Don't Ignore This Chart!

The Next Breakout In This Pipeline Stock Would Be Huge

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On a weekly closing basis, Antero Midstream Partners LP (AM) has vacillated between support near 18.00 and resistance at 28.00 for the past two years.  While the Dow Jones U.S. Pipelines Index ($DJUSPL) still has miles to go to reach its high from two years ago, the relative strength in the group has been obvious in 2016 and AM has been an outperformer within the space.  Check this chart out:

Momentum issues are the biggest problem right now for AM.  The weekly MACD turned negative on the last price high at resistance and volume also was very weak.  Prior to 2016, however, AM showed considerable relative strength.  So I'd consider entry at one of two levels - either on a test of the rising 50 week SMA to reset the weekly MACD near zero OR on a breakout above 28.00 price resistance on heavy volume.

Happy trading!

Tom

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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