COP has had a brief trend up in the past three and a half trading days of about 8%. An analysis
of the 30 minute chart suggests this could reverse. Firstly, the HA candles are now narrow-
ranged and more or less Dojis. The MTF RSI indicator of Chris Moody shows dropping RSI
on the 5 minute TF while it is hold up at 100 on the 60 minute TF. The former is indicative
of bearish divergence. In a similar fashion the zero lag MACD shows an early cross-over of
the K and D lines over the positive histogram another bearish divergence and sign of impending
reversal of momentum. Based on all of this I will take two put option on COP striking $110
one expiring 7/14 and the other 7/21 targeting stock prices of $105 then $102. I am projecting
profits of 25% on the shorter trade and 75% on the longer trade. I will find the entry on the 5
minute chart looking for a pivot high coupled with a transitioning EMA200 from a positive slope
to zero or negative. Other traders may simply short COP and hold to the lower target.
of the 30 minute chart suggests this could reverse. Firstly, the HA candles are now narrow-
ranged and more or less Dojis. The MTF RSI indicator of Chris Moody shows dropping RSI
on the 5 minute TF while it is hold up at 100 on the 60 minute TF. The former is indicative
of bearish divergence. In a similar fashion the zero lag MACD shows an early cross-over of
the K and D lines over the positive histogram another bearish divergence and sign of impending
reversal of momentum. Based on all of this I will take two put option on COP striking $110
one expiring 7/14 and the other 7/21 targeting stock prices of $105 then $102. I am projecting
profits of 25% on the shorter trade and 75% on the longer trade. I will find the entry on the 5
minute chart looking for a pivot high coupled with a transitioning EMA200 from a positive slope
to zero or negative. Other traders may simply short COP and hold to the lower target.
Trade closed: stop reached:
Small loss, Will continue to watch and see if a directional bias develops.