DailyPlay – Diamondback Energy Inc (FANG) – January 12th, 2022

The bullish DailyPlay for Tuesday, January 12th is Diamondback Energy Inc (FAND). FANG is part of the Energy sector that is experiencing very strong momentum and is providing leadership for the broader equity market. 

Technical View

• Breakout of the $116 resistance level and pullback provides a good bullish entry. 
• Bullish 1M and 6M trends
• Very strong Technical Score (10 out of 10)

Fundamental View

• Rapid rise in crude oil has boosted cash flow significantly.
• Average debt levels relative to peers but strong improvement in operating costs. 
• Earnings: Feb 22, 2022 (41 days)

As this is a Credit Spread, look to take profits at 50% gain and cut losses at 100%:

Take Profits: $2.92 Debit

Stop Loss: $11.70 Debit

View FANG Trade