Anadarko Petroleum Corporation (NYSE: APC) traded 7% higher on Wednesday morning, after Colorado voters rejected drilling limits.
However, market cycles for Anadarko’s stock price point to continued weakness in the coming weeks.
Colorado Proposition 112 was voted down 57% to 43% yesterday, with 83% 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 Anadarko’s (APC) stock 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 (APC) Stock Chart with Weekly Bars
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