On January 30, 2019, we said the following:
“The rebound has been exceptional but requires one last step in the process of confirming that the trend is actually up. In order for the trend to be CONFIRMED as up, the price of TPL needs to retest the $409 level and hold. Without holding at the $409 level, TPL would be expected to test the ascending $290.66 target, at minimum.”
Since January 30, 2019, Texas Pacific Land has had the following activity:
We’ve updated the Speed Resistance Lines because the peak in the price increased from our prior level at $871.99 to $901.04. Unsurprisingly, TPL has achieved our lowest downside target after bouncing at the $410 level.
Now our concern is how far below the $300 level that TPL might go. We seem to be in the early stages of the current market decline so we’ll have to update the downside risk as we go.