EOG Resources, Inc. is engaged in the exploration for, and the development, production and marketing of, natural gas and crude oil primarily in major producing basins in the U.S., as well as in Canada, Trinidad and other international areas. For the 9 months ended 9/30/00, total revenues rose 68% to $962.3M. Net income applicable to Common fell 58% to $227.2M. Results reflect higher average wellhead prices, offset by the absence of gains.

December 21, 2000

EOG Resources, formerly Enron Oil & Gas Company, is one of the largest independent oil and gas companies in the United States. The company is engaged in the exploration, development, production and marketing of natural gas and crude oil. The stock hit its 52-week low of $13.69 on February 25th, as investors fled safety stocks and moved into the technology sector. Since then, value has come back into favor and EOG has been on the rise, hitting an all-time high of $52.50 on Thursday. The stock has a strong upward trend accompanied with solid volume, and we believe the stock is ready to make a string of new highs. Going forward, support is the 5-dma at $49.88 with additional support at $48.69, the 10-dma. Resistance is at Thursday’s intra-day high of $52.50 and then the $55 mark. Traders may consider entry points on a bounce off of $50 or a breakout above $52.50 on volume greater than 750,000 shares by midday. As protection, we plan to set stops at $46.88, just below the 20-dma.

Picked on December 21st @ $51.63
Change since picked +0.00
Stop Loss @ $46.88