Diamondback Energy, The Original FANG Stock
Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas. Diamondback Energy Inc. under the ticker symbol, FANG trades on the NASDAQ and opened for their first trading day at $17.50 on 10/12/12.
Through smart and strategic acquisition over the years, Diamondback's production is 20 times greater than when the company came public. Now that oil prices has staged a comeback in recent years, almost all of Diamondback's acreage is profitable. Diamondback has the highest cash margins than any other Permian-based operator and as oil has roared back in recent years, Diamondback Energy has been hissing as operating and net income turning positive starting in 2017
Diamondback, from a financial standpoint is also best in breed when compared to the rest of the industry.
Lets go to the charts to see how long Diamondback Energy will continue to hiss.
Monthly Chart (Curve Time Frame) - price is right in the middle of monthly supply at $135 and the nearest monthly demand at $107. The monthly demand at $107 has been touch multiple times and may break soon. If it breaks, look for the next monthly demand at $88.
Weekly Chart (Trend Time Frame) – the trend has been range bound since the beginning of 2018. The chart suggest to play the $30 range. One may also consider putting on an iron condor right now since price is in the middle of the range.
The iron condor is a limited risk, non-directional option trading strategy that is designed to have a large probability of earning a small limited profit when the underlying security is perceived to have low volatility. The iron condor strategy can also be visualized as a combination of a bull put spread and a bear call spread.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
