October 4 Chart of the Day - Diamondback Energy
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Diamondback Energy (FANG), a leading company that primarily focuses on finding and producing oil and natural gas in the Permian Basin, West Texas, that is known for its rich energy resources, is experiencing a surge in investor interest.
Reportedly, the reasons include heightened oil risks in the Middle East and recent strategic relationship expansion.
So we wanted to review their chart from a price action technical analysis perspective.
We have featured over 300 Charts of the Day since May 2023 and teach Price Action Technical Analysis Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that price recently reached un-chartered territory after breaking out above $170 earlier this year and setting a $214.50 new all time high (ATH).
Since then, price does what it typically does after setting ATHs - pulls back and retests the area from which it broke out from.
Weekly Chart
On the weekly chart we can see where price broke above $170 with conviction, set the new high, and came back for a retest (break and retest) before powering back up towards $200.
Trading around $195 earlier today now price could be facing some overhead resistance and ultimately a decision of whether to continue powering up or fade back to the downside some more.
Of interest to also note is a "bull channel" that price has created and respected for over the last 3 years.
As traders we're limited to estimating potential upside targets using only price action tools Trend and Fibonacci as shared for free in our Trading All Time Highs webinar replay.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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