Scott thinks Teekay looks OK. $TK – December 21, 2022
TK XLE
This is Scott with your Chart of the Day. I want to share a chart that one of our contributors at StockMarketMentor.com has been talking about for a while. This is Teekay Corp. ( NYSE: TK ), which is in the oil and gas sector, and actually did quite well today.
If I look at XLE ( NYSEARCA: XLE ) it popped up above that 100-day exponential period moving average, and this ( NYSE: TK ) is still in a strong uptrend. One thing I noticed this year is that this stock likes to kind of have fake breakdowns.
You can see how it broke down here in June-July under all of the major moving averages. It then “V” shape recovered all the way back above. It had a fake breakdown again, found support at the 200-day, and then earlier this month had a fake breakdown again, it found support at the 50-day.
And so the breakdowns are getting supported at higher and higher levels. And so the buyers have to reach up to support the stock. And that is really keeping the bid, at least for now, in this name.
What I think you should do is, definitely keep an eye on this name. It is a low-dollar stock, I don’t own it personally but it is definitely one I am watching as it is riding this 8-day exponential period moving average. Today, higher than average volume. On the upside reversal here, higher than average volume.
That’s what we want to see especially on low-volume days like we are getting these days. Closer to the holidays you really want to pay attention to stocks that have higher than average volume and close within the top quarter of their trading range. And that is what Teekay ( NYSE: TK ) has done. A bit of a dip here just above the 8-day, but still able to close near the highs.
So this is one that I think we should definitely keep an eye on. Maybe have an alert on this for a new high rate above 4.62. I think you want to get some closer to the moving averages, start a position there and then add on volume and a break higher. That’s what I am looking at here for Teekay ( NYSE: TK ). It is in a good group. It’s trending up, and it is giving you progressively higher lows.
Free Chart