Can Plains All American Pipeline Get Upward Momentum?

PAA’s moving average

Plains All American Pipeline (PAA) is currently trading 3.9% below its 50-day SMA (simple moving average) and 21.9% below its 200-day SMA. That could indicate a bearish sentiment in the stock. However, PAA’s better-than-expected 3Q17 earnings, the recent gains in crude oil prices, and a recovery in drilling activity could push PAA above its short-term moving average, resulting in a bullish sentiment. According to Baker Hughes, the US rig count rose to 907 as of November 10, 2017, compared to 898 in the previous week, which is a week-over-week rise of 9.

For details on PAA’s 3Q17 earnings, read What Drove Plains All American Pipeline’s Earnings Growth in 3Q17.

Can Plains All American Pipeline Get Upward Momentum?

Short interest in PAA

Short interest in PAA was 12.2 million shares as of November 10, 2017. Short interest in PAA as a percentage of float ratio was 2.9%. That’s lower than the previous month’s average of 3.2%. That could indicate a bullish sentiment in the stock. Short interest in PAA is higher than the last one-year average of 2.4%.

PAA’s price forecast

PAA’s 30-day implied volatility was 28.2% as of November 10, 2017. That’s below the 15-day average of 32.6%. Based on its current implied volatility, PAA could trade at $20.27–$21.91 in the next seven days. It’s expected to trade within that range 68% of the time. That assumes a normal distribution of prices.

In the next part, we’ll look at last week’s rating updates for MLPs.