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

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More
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