IBD Stock Analysis
- Round-tripped a 43% gain from a 42.41 buy point
- Broke decisively below its 10-week line
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:46PM EDT on
Like many other energy stocks, Callon Petroleum went on a huge run in 2021 but has fallen as crude oil prices come off multiyear highs.
Callon Petroleum stock tumbled 9.6% to 42.43 in the stock market today. CPE stock has round-tripped a 43% gain from a 42.41 buy point of a consolidation. Round-tripping a double-digit gain is a strong sell signal. Meanwhile, Callon Petroleum stock also has decisively broken below its 10-week line for the first time since its run began in late 2020.
Both are big sell signals, based on IBD’s research.
The breakout for CPE stock began in early June, peaking at 60.51 intraday on June 25. But shares dropped afterward, especially in July.
Commodity Ebb And Flow
Callon Petroleum’s operations are largely focused on the shale-heavy Permian Basin in West Texas. It also operates in the Eagle Ford in that state, via the acquisition of Carrizo Oil & Gas in 2019.
Callon in May reported first-quarter results that beat expectations. CPE stock dipped after the results.
“Commodity prices have rebounded, activity levels are measured, and our sector has found its footing with a shift to more moderated reinvestment rates and a commitment to improving corporate returns on capital,” CEO Joseph Gatto said on Callon’s first-quarter earnings conference call in May.
However, oil prices fell this week. Reuters reported that Saudi Arabia and the United Arab Emirates had reached an agreement that “should pave the way for a deal to supply more crude to a tight oil market,” the news outlet said.
Callon reports second-quarter earnings on Aug. 3.
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