Trend Analysis
The main view of this trade idea is on the 2-Hour Chart. The stock EOG displayed 2 bullish instances over the last couple of months. The first occurred during July to September 2021 where the stock made a reverse head and shoulders chart pattern. The completion of this move took EOG back above its long term trend. The 2nd instance materialized when EOG approached the June 2021 resistance at around the 88.25 price level. It appears that the stock has broken above this resistance. Expectations are for EOG to rally towards the 115 price level. Failure of this will be known if EOG declines back below 88.25
On the Daily Chart EOG appears to be making another leg higher, with resistance seen around 115.
Technical Indicators
EOG is trading above its long term MA and the Supertrend is in bullish mode, complementing the bullish nature of the chart. The Awesome Oscillator is above 0 and green.
Recommendation
The recommendation will be to go long at market, with a stop loss at 87.50 and a target of 115. This produces a risk/reward ratio of 2.62.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes.
The main view of this trade idea is on the 2-Hour Chart. The stock EOG displayed 2 bullish instances over the last couple of months. The first occurred during July to September 2021 where the stock made a reverse head and shoulders chart pattern. The completion of this move took EOG back above its long term trend. The 2nd instance materialized when EOG approached the June 2021 resistance at around the 88.25 price level. It appears that the stock has broken above this resistance. Expectations are for EOG to rally towards the 115 price level. Failure of this will be known if EOG declines back below 88.25
On the Daily Chart EOG appears to be making another leg higher, with resistance seen around 115.
Technical Indicators
EOG is trading above its long term MA and the Supertrend is in bullish mode, complementing the bullish nature of the chart. The Awesome Oscillator is above 0 and green.
Recommendation
The recommendation will be to go long at market, with a stop loss at 87.50 and a target of 115. This produces a risk/reward ratio of 2.62.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes.
Trade closed: stop reached