Anadarko Stock Pops After Colorado Vote, But Don't Expect It To Last Long: Chart

Anadarko Petroleum Corporation APC traded over 5 percent higher on Wednesday after Colorado voters rejected drilling limits. However, APC’s market cycles point to continued weakness in the coming weeks.

Colorado Proposition 112 was voted down 57 percent to 43 percent, with 83% percent of the votes counted. This measure would have required “new oil and natural gas developments to be located at least 2,500 feet from occupied structures.”

Anadarko CEO Al Walker explained that the measure, “will have some impact in terms of where we’ll allocate capital.” The reality is that many viewed the proposition as leading to an effective ban on new oil and gas development in the state.

Our view is that APC’s rally will be short-lived. Looking at its market cycles, we can see that the stock is in the declining phase of its current cycle. As such, our projection is for further declines to the recent low of $52.75, and potentially as low as $48 in coming weeks.

Anadarko Petroleum Corporation Stock Chart with Weekly Bars

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