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Analyzing American Midstream Partners’ Technical Indicators

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American Midstream Partners 

In this part, we’ll discuss American Midstream Partners’ (AMID) technical indicators following its announcement to acquire Southcross Energy Partners (SXE). Currently, American Midstream Partners is trading 3.6% below its 50-day simple moving average and 7.9% below its 200-day simple moving average. It might indicate bearish sentiment in the stock. The transaction, which American Midstream Partners thinks is accretive to its distributable cash flow, could push the partnership above its short-term moving average and result in bullish sentiment.

At the same time, a negative rating update from Moody’s and continuous fall in the Eagle Ford’s drilling activity could push American Midstream Partners further down its short-term moving average. Moody’s announced a review of American Midstream Partners’ ratings following the merger announcement.

Short interest

The short interest in American Midstream Partners was 0.6 million shares as of November 3, 2017. At the same time, the short interest in American Midstream Partners as a percentage of float ratio was 1.24%. It’s lower than the last month’s average of 1.26%. The short interest in American Midstream Partners is lower than the average of 1.29% in the past year. It might indicate bullish sentiment in the stock.

Price forecast

American Midstream Partners’ 30-day implied volatility was 30.2% as of November 3, 2017. It’s below the 15-day average of 31.1%. Based on its current implied volatility, American Midstream Partners might trade in the range of $12.30–$13.38 in the next seven days. American Midstream Partners is expected to trade in this range with a 68.0% probability. It assumes a normal distribution of prices.

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