Oil, Software Stocks Hold Up Well Amid Broad Sell—Off

March 24:

A handful of stocks in the energy and security software industries held up relatively well in Monday's broad sell-off.

Antero Resources (AR), a leading producer of oil and gas in the Marcellus shale region in and around West Virginia, jumped 3% to a new high in solid volume. The gain put the stock out of buying range, 6% past a 62.14 entry from a cup-with-handle base.

The stock has climbed nearly 50% since going public on Oct. 10 at 44. But it's been volatile since breaking out March 18 in strong turnover.

Antero has posted triple-digit profit growth in each of the past three quarters. Profit for this year is seen rising 145% to $1.59 a share, followed by a 52% gain in 2015.

Diamondback Energy (FANG), which drills for oil and gas in the Permian Basin in West Texas, slipped a fraction in weak volume. It's been trading in tight fashion in recent weeks and is extended 9% above a 58.80 buy point.

The stock ran quickly up its 10-week moving average after going public in Oct. 2012. It corrected late last year to shape its latest pattern, which is fourth stage and therefore highly risky.

Matador Resources (MTDR) also ended down a fraction in lackluster trade. It cleared a 24.20 cup-without-handle buy point on Feb. 24. However, volume was only 20% above normal, and the stock soon rolled over and fell 8% below the entry, triggering a sell rule. It's trying to make a comeback after getting support at the 10-week line.

In the security software industry, Palo Alto Networks (PANW) dropped 4% in modest trade, falling for the fourth straight session. But it's still above its 50-day line and remains extended, 12% past a 65.02 buy point.

Palo Alto is in the final week of IBD's eight-week hold rule, which was triggered after the stock rose more than 20% past the 65.02 buy point in less than three weeks.

Palo Alto is among the top stocks in the Computer Software-Security industry group, which was ranked 8th out of 197 as of Monday's IBD. Profit growth has ranged from 60% to 100% the past three quarters, while sales growth ranged from 46% to 49% over that span.

Imperva (IMPV), another software security stock, slipped 1% in above-average trade. It's extended 21% past a 50.80 entry from a double-bottom base. Investors should consider taking profits in stocks that rise 20% above their buy points.

Source: http://news.investors.com/investing-ipo-analysis/032414-694409-antero-paces-ipo-stocks.htm?ven=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:%20InvestingRss%20(Investing%20RSS)