CLR Drops After Shale Production Pause

CLR is currently down over 60% this year

Deputy Editor
Apr 24, 2020 at 10:43 AM
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The shares of Continental Resources (NYSE:CLR) are down 4% at $12.70, amid news that the company ceased production in North Dakota and closed off most of its wells in the state’s Bakken shale field. Earlier, it was reported that CLR declared force majeure on at least one contract after crude dipped into the negative this week.

Continental Resources stock is feeling pressure at the $14.50 - $15 level, which is also home to CLR's pre-bear gap lows. The descending 50-day moving average is keeping a lid on the shares, too, with CLR now staring at a 62% year-to-date deficit. 

Analysts are all over the board with CLR. Of the 21 covering the equity, six call it a “strong buy,” while two sport a “strong sell.” The remaining 13 say now is the time to “hold.” Additionally, the stock’s consensus 12-month price target of $16.38 is a 23.8% premium to current levels.

In the options pits, CLR sports a 10-day put/call volume ratio of 1.79 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than all but 2% of previous reading from the last 12 months, suggesting a healthier-than-usual appetite for long puts, as of late.


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