Three Rising Valleys pattern on Cabot Oil & Gas (COG) is a good sign

Oil and gas exploration company Cabot Oil & Gas (NYSE: COG) saw a bullish pattern develop on its daily chart recently and that pattern is called Three Rising Valleys. The stock hit a low of $20.83 in October, $21.85 in January, and $23.47 last week. The incremental jumps in the low prices form the pattern.

The daily stochastic readings were in oversold territory and made a bullish crossover on Monday and that is also a possible bullish sign for the stock.

The A.I.dvisor Trend Prediction tool generated a bullish signal on Cabot Oil & Gas on February 7. That signal only carried a confidence level of 56%, but the previous predictions for the stock have been accurate 75% of the time. The combination of the three rising valleys pattern, the bullish signal from the trend prediction tool, and the bullish crossover on the stochastic readings give me more confidence in the trade setup.

The fundamentals for Cabot Oil & Gas are particularly interesting. The earnings have been flat over the last three years, but the most recent quarterly report showed an increase of 257%. Analysts expect the company to show earnings increasing by 128% for the year as a whole.

Cabot Oil & Gas is expected to release its next earnings report on February 22.

Contributor

Harry Richardson|Expert

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.