Traders Take Note: Bonanza Creek Energy Inc (NYSE:BCEI) Stock Drops, Weakness in Technical Momentum
(BCEI Price of Stock at Publication: $30.62)
Take Note: Bonanza Creek Energy Inc (NYSE:BCEI) has hit some technical weakness in its momentum, and while it has not broken down all the way through support -- watch the key levels that we discuss below and further, watch the stochastics and technical oscillators for any kind of momentum gaps.
The company has a two bull momentum rating which indicates weakness -- but not a full scale breakdown. There can be a contrarian urge to enter a new long position as the stock drops, but as of this moment, the stock price is moving lower and may yet weaken further. If a reversal becomes apparent, waiting for that strength in the technicals may be more prudent than jumping in as the stock drops.
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BCEI is up +7.0% over the last three months and down -19.9% over the last six months. The stock has returned -72.4% over the last year. The current stock price is $30.62.
BCEI Stock Returns
Technicals | Support: 27.75 | Resistance: 35.02
Death Cross Alert: The 50 day moving average is now below the 200 day moving average.
As we noted above -- the back of the envelope rule here is that when shorter-term moving averages move below the longer-term ones, momentum is weakening. We have that right now.
Swing Golden Cross Alert: The short-term 10 day moving average is now above the 50 day moving average.
When the shortest-term moving average (10-day in this case) moves above any other moving average (50-day in this case), momentum is climbing.
Bonanza Creek Energy Inc has a two bull (momentum weakness) technical rating because it's trading below the 10 day , 50 day and 200 day simple moving averages. The fact that the 10 day moving average is above the 50 day moving average ("swing golden cross") does bring the technical rating up from the lowest rung.
We now turn to the actual numbers driving this rating:
Bonanza Creek Energy Inc (NYSE:BCEI) rating statistics:
10-day moving average: $33.79
50-day moving average: $32.21
200-day moving average: $70.07