PWE - holding the big $10.00 level

Penn West Petroleum (PWE) managed moderate gains today, despite the main indexes having their biggest daily decline in 5 weeks. The fact PWE held the hugely important lows from early November is also a good sign the floor is indeed going to hold.


PWE, daily

Summary

Today's action in PWE was a great contrast to the weakness seen in the broader market. Whilst the indexes saw declines of around 1%, PWE actually managed to close 0.7% higher.

Lets be clear, PWE is still holding within a down channel, and it won't be until its above the $10.75/11.00 level, that we can be more secure that the huge drop that extends all the way from March 2011 (when PWE was $26)..is over.


Not the best...but certainly not the worst.

PWE is not without problems, but it seems reasonably stable..and the balance sheet appears acceptable at the current valuation.

see key stats @ yahoo! finance

If we see a few daily closes >$11, first target would be the declining 200 day MA @ $12.50.

The old head/shoulder high of $16  from September 2012 will be important to break by the early summer.