Marathon Oil (MRO) is engaged in the oil and gas exploration and production business, the stock is a member of the S&P 500 and it has been one of the worst performing stocks in the index in the last 3 months. However, a possible character change might be taking place in the stock.
As you can see clearly from the chart below, the 20 day moving average has been a key moving average for this stock. The stock tends to trend above or below the 20 day for decent periods of time. It had a decent move higher above its 20 day from December 2011 until March 2012, then it had a smooth ride down below the 20 day moving average from mid March until just this past week. And therein lies the possible change of character.
In a situation like this, I like to nibble on the long side above the 20 day with a stop on any close below the 20 day.
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