Today’s new recommendation is a timely buy on a strong momentum stock from the technical analysts at Investors Intelligence. Vist their website to learn more about how to read the point and figure (P&F) charts used in their analysis below.
“The Oil & Coal sector’s Bullish Percentage notched on another 1.58% on Thursday, advancing a further box to the upside. The rally, with its ‘bull confirmed’ status, looks set to extend up to the high from October at 64%. ...
“The P&F price and relative charts for Hess Corp. (HES, $59) both show trading pulling out of base formations which developed during 2012 (click the charts below for a larger version, the chart on right is relative to the S&P500). The breakouts are in their infancy, so providing the general market holds up, there is plenty of upside to be had. The base on the price chart has a depth of around $15, equating to an upside target of $70.
“HES is an outperformer and we shall buy for the Trading Portfolio. Trade would be exited following three consecutive end-of-day closes beneath $55.”
- John Gray and Tarquin Coe, Investors Intelligence, January 25, 2013