ETP Is Between the 50 and 200 Day Moving Averages

Published on Wednesday, 11 April 2012 06:52 Written by TradersHuddle Wire

New York, April 11th (TradersHuddle.com) - Energy Transfer Partners, L.P. (NYSE:ETP) closed the trading day at $45.73, near its 50 day and 200 day moving averages set at $47.22 and $45.64 respectively. ETP's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.

Energy Transfer Partners, L.P. (NYSE:ETP) is a publicly traded partnership owning and operating a diversified portfolio of energy assets. ETP has pipeline operations in Arizona, Colorado, Louisiana, New Mexico, and Utah, and owns the largest intrastate pipeline system in Texas. The company currently has natural gas operations that include gathering and transportation pipelines, treating and processing assets, and three storage facilities located in Texas. And its one of the three largest retail marketers of propane in the U.S.

ETP seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in ETP and wait for the stock to break out above its 50 day moving average at $47.22. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $45.64 breaks, it could signal further downside pressure for ETP.