The Company is a Delaware corporation organized under Delaware General Corporation Law and is engaged in the acquisition, development, operation and exploration of oil and natural gas properties in the Gulf Coast region of the United States, primarily in Louisiana, Mississippi, Alabama, and Texas. Just over six years ago, the Company started a new focus area through an acquisition of a carbon dioxide tertiary flood in an area very familiar to the Company, Mississippi. Denbury has acquired other related assets and are making CO2 flooding the largest part of its business. (Source: Bigcharts)

Denbury Resources Inc. (DNR: NYSE) is my next great momentum stock play. First let me tell you a little bit about what makes this play special. Above all, the stock is in a strong uptrend and has been in a slightly downward consolidation period, forming a tight head and shoulders pattern. Major support has already been tested three times at the $26/share level and is finally poised for a quick surge upward. In this two-year weekly chart you can see evidence of just how quickly this stock can rise, shooting from $14 to $24 in two months’ time and then from $24 to $36 in about three and a half months.

The MACD and DMI indicators below the graph have both recently signaled that we are in the middle of an enormous buying opportunity at ground levels. The dust has settled my friends and now is the time to get in at bargain prices. Look for a breakout above $30 and don’t look back.

Our Recommendation: Buy shares of DNR at or near $29.92 and place a 5% stop loss below your purchase price.