PWE daily April 9th
PWE (Penn West Petroleum Ltd) will be added as both an Active Long Trade (i.e.- swing trade) as well as a Long-Term Trade idea with the current final target, T3, at 2.52 & the potential for the final target on the Long-term Trade to be extended to the 4.00 area, depending on how PWE & oil both trade going forward. Suggest stop below 1.65 (or higher, if only targeting T1).
Also note that PWE has pulled back following the recent breakout & could drift somewhat lower to either to either the 1.77ish support (green line) or possibly a backtest of the wedge. Therefore, a more conservative option would be establish a partial position here, adding on a pullback to one or both of those support levels. Investors & trend traders viewing PWE as a long-term trade, which has the potential for a 100%+ return, not including dividends, should PWE ultimately work its way up to the 4.00 potential target area, might also consider a scale-in strategy, buying partial lots of PWE over the next several months.