Legacy Oil & Gas ( TSX:LEG)

legacy gartleyThe embedded chart in this post is of Legacy Oil & Gas (TSX:LEG) showing the classic paralleogram setup. The apex in the summer of 2012 was indeed a buy signal. However, price action has now lapsed into a sideways channel. The risk from here is that price falls below the bottom of the channel at just over $6. Great company, weighted to oil instead of dry gas, but with Canadian oil producers receiving an absolutely god-awful netback as compared to WTI prices ( this is all related to diminished pipeline capacity to move oil into US markets due to on-going maintenance issues on said pipeline), TSX:LEG may experience soem weakness going forward.

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