Newfield Exploration Company was founded in 1989 and initially focused on the shallow waters of the Gulf of Mexico. The Company is an independent oil and gas Company engaged in the exploration, development and acquisition of crude oil and natural gas properties. The Company’s domestic areas of operation include the onshore Gulf Coast, the Anadarko and Arkoma Basins of the Mid-Continent, the Uinta Basin of the Rocky Mountains and the Gulf of Mexico. Internationally, the Company is an active offshore Malaysia and China and in the U.K. North Sea. All of the Company’s natural gas and oil production is sold to a variety of purchasers under short-term contracts at current market prices.

Let’s see…energy prices are on the rise and look what comes up on the momentum radar. Newfield Exploration Company. This stock is currently setting up for a breakout from its consolidation, which us technical analysts would refer to in this case as a symmetrical triangle.

In the three-year weekly chart below you can see how the stock has made some pretty solid gains in the past. Now that things have cooled off quite a bit I believe it is an excellent time to buy in and get the most bang for your buck. Since the outlook is on a slightly longer time horizon I am asking you to be patient with this play. It may take some time to get the boat moving, but when it does you could easily see the stock run to roughly $75/share.

Our Recommendation: Buy shares of NFX at or near $48.30 and place a 5% stop loss.

Good Investing…