Apache Corporation (APA)

Apache stock forecast: buy or sell

Apache stock outlook

  • Apache stock only moved -0.38% to close at $15.54 on the stock market on Friday, and broke a streak of 3 sessions in red.
  • Raymond James posted a strong buy rating for Apache on Thursday
  • Apache posted its financial report on July 29
  • Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids (NGLs).
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Important:
The comments written in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the particular positions of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are posted for informational purposes only

Apache stock chart overview

Should I buy Apache stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is APA stock a buy?

Currently, Apache stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for APA in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Apache stock?

"To sell or not to sell", if you are holding Apache shares?. Trading strategies let us to avoid rash decisions based on our personal feelings or the buzz surrounding the market. When selling, as well as buying, our strategies are very simple to follow but are only valid for selling shares you already own, not for selling short APA stock

A golden rule is that you must never mantain a trading operation that generates greater losses than those expected by the time of the buy. The timing to sell shares always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Apache stock?

Currently, Apache stock doesn't match any of our preferred sell setups, so if you own Apache shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Apache stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 3 brokerage ratings were published for Apache. General sentiment is bullish, with 3 out of 3 posting optimistic forecasts

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Apache ratings

Brokerage firmRating
Jul 23rd, 2020
JPMorgan Chase & Co. NeutralBuy
Jul 30th, 2020
Stifel Nicolaus NeutralStrong buy
Aug 6th, 2020
Raymond James Strong buy

Technical analysis

SMAs overview

Moving averages are indicators for investors to detect stock momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. You can found more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Technical analysts use support and resistance levels as a way to spot price points in the stock price action that tend to behave as barriers, containing the price of an asset to move in certain direction. Supports are levels where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue descending until approaching another support level. On the other side, resistance levels are where the price may find opposition as it rises. In the same way, the price is more likely to "rebound" at this level, and if it finally crosses this level, it will climb more easily until it finds the next resistance

The current resistance levels are:

  • R1: $15.58 (0.26% above)
  • R2: $16.70 (7.46% above)
  • R3: $16.83 (8.3% above)
  • The current supports are:

  • S1: $14.97 (-3.67% below)
  • S2: $14.78 (-4.89% below)
  • S3: $14.67 (-5.6% below)
  • Bollinger bands

    So-called Bollinger bands are a widely known practice that was created by John Bollinger. It is composed of three lines that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on Monday, the price has corrected downwards by 3.54%

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price changes to detect when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI ranges between 0% and 100%. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by traders

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Friday was 57.9. Apache stock sank a 12.2% since then

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    Earnings and financials

    Apache Corporation (APA) posted quarterly earnings of $-0.74 per share, significantly enhancing the Market consensus estimate of $-1.01 per share. This quarterly report represents an earnings surprise of 26.73%. Estimated revenue for this quarter was $719.7 million but Apache slightly improved by 7.12%, posting $771.0 million.

    In comparing, the EPS for the same quarter last year was $0.11, so posted EPS is a drop of -772.73%. Revenue collapsed a -51.63% on an annualized basis in the second-quarter, from $1.6B to $771.0M last quarter.

    Apache is hosting the quarterly earnings call next October. Wall Street forecasts earnings of %s per-share of $-0.57, compared to previous quarter that made $-0.74. If you own or you are looking to buy Apache stock, be aware that the earnings reporting day usually has a very high volatility, and price can soar and sink with unsually low liquidity and not honouring your buy/stop-loss orders. You can obtain more information about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.apachecorp.com.

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