Bull & Bear: EOG Resources

Shares of EOG Resources EOG are trading higher on the session by 1.95%, at $102.87. With the recent decline in shares, you have to wonder where they are heading next… Bulls: Bulls will note that today's action is very constructive, given that EOG Resources has made a hard reversal just below a key support level ($102.00). Given that the 20-day and 50-day moving averages are well above shares, the stock should continue to see show mean reversion on short covering. Bulls will note that EOG Resources is also trading in oversold territory. A bullish trader could buy the July $105/110 call spread for a net debit of $1.37. Bears: Bears will note that the 20-day, 50-day, and 200-day moving averages are all downward sloping. This is an indication that EOG Resources has been under distribution; this has also created a plethora of resistance levels above the current trade price. Bears will also note that put volume has been running higher than normal or that past two weeks, despite the decline in shares. A break below the $102 support level could send shares toward $99, then $96. A bearish trader could buy the August $100/90 put spread for $2.65. EOG Resources, Inc., together with its subsidiaries, explores, develops, produces and markets natural gas and crude oil primarily in producing basins in the United States, Canada, The Republic of Trinidad and Tobago, the United Kingdom, and The People's Republic of China.