Linn Energy Holding Up Well Relatively Speaking

 

Linn Energy LLC (NASDAQ:LINE) is an independent oil and natural gas company development company.   The Company’s properties are located in the United States where it is taking advantage of the longer term trend of increasing demand for natural gas. 

Looking at a three year weekly chart of the stock note the up-trend that started in late 2008.  In early August the stock again bounced right off that up-trend, confirming its strength…at least for the time being.

 

On the daily chart looking back to late 2010 the $36 level (blue line) served as support until early August, when due to severe volatility in the broader market Linn Energy LLC (NASDAQ:LINE) dropped below $36 and just as quickly re-captured that level.  Yesterday the stock continued the wild ride and again closed below $36.  Unlike the S&P 500 or even to the energy sector itself however we find that this stock is nowhere near its early August lows and hence holding up relatively better. 

 

If and when Linn Energy LLC (NASDAQ:LINE) again recaptures the $36 level with more confidence I would suspect it could outperform the broader market during an oversold bounce.  Assuming an entry price near $36.50 one could place initial stops near $35 and profit targets around $38.50.

Watch More:

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Serge’s Daily Trading Tips

Subscribe now and get clear, actionable, and relevant trade ideas!

By giving your contact info you agree to receive future emails from The Steady Trader including educational and promotional content. By providing your mobile phone number and clicking on the above “Subscribe” button, you agree to receive automated promotional messages from us via SMS. By opting into our SMS Program, you agree to our Terms and Conditions and Privacy Policy.