Will Q2 Earnings Boost Price?

FANG stock price has been in an uptrend, forming higher lows, since the formation of support at $124 at the end of June 2023. The stock price had several retracements but could not shift the trend. Currently, Diamondback Energy’s stock price is headed toward an annual high of $152.79.

Recently, the stock price broke the resistance level of $140.80 and targeted the $150 psychological level but the move was halted at $146.30. The candle of 27th July 2023 closed bearish indicating the presence of bears near $150.

The last candle broke the low of the 27th July candle but bulls entered the market and pushed the price above $145. The last candle closed bullish with a long lower wick.

If the price can rise above $146.30, there is a possibility that it might head toward the $150 resistance. On the other hand, if bears take control and push the price below $140.80, it might melt toward the next support level of $134.90 causing a downfall of 4.22% in the price.

Expectations for FANG Second Quarter Results

Diamondback Energy has scheduled the release of second-quarter results on July 31, 2023. The consensus estimate for the to-be-reported Quarter is $3.88 per share on revenue of $1.896 Billion.

In the first quarter, FANG missed the earning per share by $0.23 (5.41%) as the consensus estimated the earning per share to be $4.33 while it turned out to be $4.10. The company was successful in reporting revenue more than the consensus estimate.

The second quarter results are likely to have benefited from the higher production. The company has been continuously churning out volumes from its wide inventory of drill-ready locations in the Permian basin. However, lower oil and gas realizations are likely to downgrade Diamondback Energy’s revenue and cash flow.

Will Fang Stock Price Rise to $150?

The FANG stock price trades above 20, 50, 100, and the 200-day Exponential moving average, indicating bullish momentum. Chaikin money flow (CMF) score is 0.16 suggesting strength in the market. The relative strength index (RSI) entered into the overbought zone and the price entered into a short-term pullback.

RSI currently trades at 68.79 and is upward sloping, but will soon enter into the overbought zone again. The Bollinger bands have also expanded indicating an increase in volatility. FANG price has been trading near the upper band since the bullish rally started.

Conclusion

There is uncertainty about whether Diamondback Energy will beat the estimates or not. If the results are positive, the FANG price might trade above $150. The market structure and price action are bullish and there are no signs of short-term pullback.

Technical Levels

Major support: $134.90 and $127
Major resistance: $150 and $156

Disclaimer

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