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TSLA, PCLN on fire, shale oil showdown

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cash1 February 26, 2014 (Chinavestor) American shale oil companies continue to steal the show on the momentum chart below. Continental Resources (NYSE:CLR) is trading closest to theoretical highs followed closely by Tesla Motors (NASDAQ:TSLA) and Priceline.com Inc. (NASDAQ:PCLN). Whiting Petroleum (NYSE:WLL) is right at their heel along with Kodiak Oil & Gas.

The good news is that neither of these stocks are extremely overbought. In other words, there is no immediate pressure for a technical correction. However there are some differences among these companies from a technical point of view. Continental Resources (NYSE:CLR) is not only trading at closest to theoretical highs but has advanced from the lower end of its trading envelope to way above it in just two weeks. The stock went from $107.9 to $123.4 in a quick succession. Reason being that Continental (NYSE:CLR) is going to report earnings right after the close today. Expectations run high, no doubt.

The same goes for Whiting Petroleum (NYSE:WLL). This is another shale oil pay operating mainly in the northern Bakken field. This stock is not so overbought as CLR is because investors are more conservative with a more conservative company. Growth rate for Whiting Petroleum (NYSE:WLL) has been half of larger Continental Resources (NYSE:CLR) in the past. No wonder WLL is trading at 15 times earnings where as P/E for CLR is 26.

Then there is Tesla Motors (NASDAQ:TSLA). The stock went bananas on Tuesday after news that it is going to roll out a mass market electric vehicle within three years. The stock price rose $30 in just one day. Half of it in pre-market the other half during regular trading hours. See second chart on this page. Despite such an unusual rally, the bigger picture is not so extreme. Tesla Motors (NASDAQ:TSLA) went from $196.6 to $248 in two weeks and given the pace of advance for this company, such advance is not so unusual. All told, TSLA is not extremely overbought despite a $30 jump on Tuesday.

Priceline.com Inc. (NASDAQ:PCLN) is very similar to Tesla (NASDAQ:TSLA) when it comes to a technical analysis. PCLN closed @ $1353, up $139 from prices two weeks ago. But the pace of advance is not so unusual and Priceline.com is not overbought.

Kodiak Oil & Gas (NYSE:KOG) pulled back from an overbought position earlier the week. KOG is going to report after the close on February 27, Thursday.

Apple Inc. (NASDAQ:AAPL), Groupon (NASDAQ:GRPN) and Starbucks (NASDAQ:SBUX) are falling on hard times.

Tech_02252014


Tesla Motors Co. (NASDAQ:TSLA) rose $30 on February 25, 2014. Price development in pre-market and first hour of regular trading.

TSLA_201402205



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