And here is another energy stock bucking the current bearish trend in the indices, namely Northwest Natural Gas Company with the ticker NWN. From a technical perspective, this stock has many of the characteristics of WEC, and continues to maintain its bullish momentum whilst all around is chaos and confusion. Last week’s price action for the stock certainly exhibited some of these traits closing as a long legged doji candle on indecision, yet higher on the week and preceded by two solid wide spread up candles on rising volume, which is always an encouraging sign.
Yesterday’s price action once again saw the stock move higher against the general trend, and the key now from a technical perspective is the price resistance now immediately ahead at $69.50 and denoted with the blue dashed line. This level is relatively strong as we can see from the width of the line which is determined by the number of times this level has been tested and rejected on the accumulation and distribution indicator. Should this level be breached, this will provide an excellent platform of support for the move higher, through $70 and on towards $72 in due course, where a low volume node awaits which will help to give the stock a further lift.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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