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Brigham Exploration and Continental Resources looking attractive here
Posted by bakken
It’s been a tough 2 weeks for oil with a flurry of news causing massive volatility and ultimately sending Bakken stocks down about 5-10% since the beginning of May.     A number of factors including supply/demand concerns, margin requirements and rumors of Gaddafi being wounded (and possibly ousted) leading to the net decline.  In looking at 2 major players in the Bakken region, Brigham Exploration (BEXP: 0.00 N/A) and Continental Resources (CLR: 71.31 +0.62%) , there are some strong technical indicators that we will see a bounce.   Continental is down about 15% from its 52 week high earlier this year and Brigham is down almost 28% from its 52 week high.  Both companies have met earnings expectations, although one could argue that Brigham didn’t beat expectations as much as expected to match their lofty growth expectations on the street.
In taking a closer look at both charts below,  both CLR and BEXP should see major support very close to current PPS ($27 for BEXP, $60 for CLR) and both are at the lower Bollinger Band which can also be interpreted as a level of support (Bollinger Bands is an indicator of relative price performance against a stocks short term historical performance).  Fundamentals are still intact for both companies with Brigham getting a reiterated Buy rating and a price target of $41 from Jefferies last week.  We agree with this sentiment and expect a short term bounce of at least 5% for both CLR and BEXP in the next month.
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Tags: BEXP CLR gadaffi jefferies libya oil
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