On-Fire ONEOK Set to Surpass All-Time High Amidst 30% Surge – CCN Markets
ONEOK (OKE) has been in a strong uptrend ever since it posted lows of $18.84 in December 2015. During this bullish rampage, the stock managed to print an all-time high of $71.99 in July 2018. Since then, the bulls have been struggling to take the stock to greater heights.
David Blair noticed OKE’s inability to convert resistance of $70 into support.
While some traders are bearish on OKE, we are taking the contrarian stance. It is possible that ONEOK could take out the resistance and print a fresh all-time high.
ONEOK (OKE) Flashing Multiple Bullish Patterns
It is true that buying shares at resistance levels is not a wise investment strategy. However, this principle should be reconsidered once the stock forms higher lows while consolidating near the resistance. This tells us that bulls are preparing for a big push.
We’re seeing these signs develop in OKE.
The weekly chart reveals that OKE is painting an inverse head-and-shoulders pattern. This structure indicates that the bulls are using higher lows to push the price up and breach the neckline of $70.
While bulls have been unsuccessful in convincingly piercing the resistance, we believe that it could be only a matter of time before they do. The supply area of $70 has been tapped multiple times over the last year. This suggests that the resistance is nearly drained.
Also, a look at the longer timeframe reveals a larger bullish formation.
The monthly chart shows that the security is brewing a large cup and handle pattern. Thus, a convincing breach of the $70 resistance will likely attract investors who are currently staying on the sidelines.
Analyst: Sees ‘$104 as the Next Reasonable Target’
In addition, Ian McMillan, CMT, an analyst in the RIA industry, shared his stance on CCN. He said:
“Although energy has been a horrible space to be in for the last few years, recently select MLPs have held up pretty decently and ONEOK (OKE) happens to be one of them. From a technical perspective, we are currently sitting below resistance around the $72 area, going back to 2014. If we were to break above this level, and hold, I think you could look at $104 as the next reasonable target on the upside.”
This is our case for why ONEOK is threatening to breach its all-time high.
Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.