Bollinger Band Strategy For ATP Oil and Gas
It is a good idea to hold off on playing ATP Oil & Gas (ATPG) until after the earnings call because there is too much uncertainty ahead of that. Every since the Macondo spill last year, the recovery in this stock has been very consistent on a technical basis, and a Bollinger band strategy can be best used to play it.
The stock shows a pattern of spiking above its top Bollinger band on the six month chart, back fills, gains support, and then repeats the process. Fundamentally, this company is very close to getting their deepwater permits as Noble received the first on Monday, and the pressure has increased to hurry the pace as the price of oil now climbs above $100. If ATP does get that permit there will likely be analyst upgrades and strong short covering that can propel the stock a lot higher going forward.
