NASDAQ:APA may be ready to breakout.

A possible breakout setup was detected on APA CORP (NASDAQ:APA) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:APA.

Technical Analysis Observations

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to APA. Both in the recent history as in the last year, APA has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, APA did better than 98% of all other stocks. On top of that, APA also shows a nice and consistent pattern of rising prices.
• APA is part of the Oil, Gas & Consumable Fuels industry. There are 406 other stocks in this industry. APA outperforms 85% of them.
• APA is currently trading near its 52 week high, which is a good sign. Certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
• In the last month APA has a been trading in the 36.12 - 45.27 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

Why is NASDAQ:APA a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:APA this score is currently 8:

APA has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 40.95, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for APA in the last couple of days, which is a good sign.

How to trade NASDAQ:APA?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NASDAQ:APA and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.