Todays stock pick is Murphy Oil- stock symbol MUR.

Trade plan
note: I do not trade every stock I recommend. This trading plan is presented for education purposes

Entry reasons -

• Fresh buy signal on the MACD
• a strong increase in volume and price over the past 3 days.
• Stock is breaking out of a long ascending triangle.
• P/E is 16+ and industry group is 22+
• Energy stocks and oil & gas operations are up trending and out performing the market

Price Target

Based on the chart pattern and P/E ratio, as well as a solid 77% project earnings growth for 2008, I believe MUR could reach $131. I am setting the price target for this trade at $121 for a profit of just over 26%

Stop loss

Strong support around $86. Setting stop at 83.42

Trade duration

6 month buy and hold.

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