Sam Collins

Apache Correcting Before Breakout

by Sam Collins   03/25/08

Apache Corp. (APA) -- This exploration, development and production of natural gas, crude oil and natural gas liquids company has been a darling of the energy analysts.

On Oct. 3, with APA at $89.44, the Trade of the Day said, "Early this year, APA broke from a channel consolidation at $70 and made a run to an all-time high above $92. Stocks that make a break through $90 usually make it to $100 and APA looks like a good bet to do just that."

Apache not only made it to $100 but exceeded $120. APA is now in a correction following that run and, yesterday, it bounced from its 50-day moving average. The stock is in a bull market that will more than likely take it to new highs. But before it does, look for more corrections with ultimate support at the 200-day moving average now at around $95.

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