Summary
NGL has broken above a key resistance level at $10.09, currently trading at $11.32 (12.2% beyond the level). This technical breakout signals buying pressure and suggests potential upward momentum. The RSI at 71.9 indicates overbought conditions, suggesting caution despite the breakout. This is a 100-day trendline break, which is more significant than shorter-term breaks as it indicates a potential shift in the longer-term trend direction.
Technical Chart
Breakout Analysis
When a stock breaks through an established resistance level with conviction, it often signals that the previous price barrier has been overcome. The 12.2% move beyond the resistance level indicates strong buying pressure.
Key Levels to Watch
| Breakout Level | $10.09 |
| Current Price | $11.32 |
| Break Distance | 12.2% |
Investment Advisor Score
60.0/100
BUYOur AI-powered investment scoring system analyzes multiple factors including fundamentals, technicals, and market sentiment to generate this score.
Company Overview
NGL ENERGY PARTNERS LP
NGL Energy Partners LP is a USA-based firm that owns and operates a vertically integrated energy business. The company's operating segments include Crude Oil Logistics, Water Solutions, and Liquids Logistics. It operates crude oil Logistics, owns pipeline injection stations, and offers services for the treatment and disposal of wastewater generated from crude oil and natural gas production, as well as for the disposal of solids, such as tank bottoms and drilling fluids.
Why This Matters
Energy sector stocks like NGL are heavily influenced by commodity prices and supply/demand dynamics. This breakout may reflect changing views on energy demand, production levels, or geopolitical factors that impact the sector.
While the 3.9% profit margin is modest, it demonstrates the company is generating positive earnings. Traders should watch for margin expansion as a catalyst that could extend this move.
Competitive Position & Moat
NGL Energy Partners LP benefits from several competitive advantages, including its vertically integrated business model, which enhances operational efficiency across its Crude Oil Logistics, Water Solutions, and Liquids Logistics segments. The company's ownership of pipeline injection stations and facilities for wastewater treatment creates significant barriers to entry for potential competitors, while its established relationships with retailers, wholesalers, and refiners bolster customer loyalty and contribute to high switching costs. These factors, combined with scale efficiencies in logistics and disposal services, provide NGL with a robust competitive moat. In terms of market position, NGL operates in critical sectors of the energy supply chain, positioning itself as a vital partner in crude oil logistics and wastewater management. The company's focus on water solutions for crude oil and natural gas production not only differentiates its service offerings but also aligns with increasing regulatory scrutiny on environmental practices, thereby enhancing its appeal to environmentally-conscious clients. However, NGL faces potential risks from fluctuating crude oil prices, which can impact demand for its logistics and disposal services. Moreover, competition from both established players and new entrants in the energy logistics space could pressure margins. Additionally, regulatory changes concerning environmental practices may pose operational challenges and increased compliance costs.Financial Health (SEC Data)
Based on the latest SEC filings, here's an analysis of NGL's financial position:
Profitability Analysis
| Revenue | $3.25B |
| Net Income | $125.46M |
| Profit Margin | 3.9% |
The 3.9% profit margin indicates modest profitability. The company is generating positive earnings but margins are relatively thin.
Options Market Insight
| Unusual Activity Score | 5.3 |
Technical Indicators
| RSI (14) | 71.9 |
| MACD Signal | Bullish |
| 50-Day SMA | $9.83 |
| 200-Day SMA | $9.59 |
| Price vs MAs | Above both (Bullish) |
Next Levels to Watch
| 50-Day SMA | $9.83 |
| 200-Day SMA | $9.59 |
Trading Considerations
- Confirmation: Watch for sustained price action above $10.09
- Volume: Look for volume confirmation on continued moves
- Role Reversal: Broken level at $10.09 may now act as support
- Risk Management: Always use stop-loss orders
Conclusion
NGL's break above the $10.09 resistance level represents a significant technical development. Combined with a bullish investment score, this breakout may present a buying opportunity for momentum traders.
Related Analysis for NGL
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. Always do your own research and consider your risk tolerance before making trading decisions.