4 Trade Ideas for ConocoPhillips: Bonus Idea

• Posted by Greg Harmon
• on October 7th, 2024

Here is your Bonus Idea with links to the full Top Ten:

ConocoPhillips, $COP, comes into the week approaching resistance. The Bollinger Bands® are opening higher as price rises. The RSI is climbing into the bullish zone with the MACD positive and moving up. The 200 day SMA is above at 115.12. There is resistance at 115 and 117 then 120 and 122 before 124 and 127.75. Support lower is at 112.25 and 110.50 then 108.50. Short interest is low at 1.8%. The stock pays a dividend with an annual yield of 3.07% and has traded ex-dividend since August 12th.

The company is expected to report earnings next on October 31st. The October options chain shows the biggest open interest at the 105 put strike and at 115 on the call side. The November chain has open interest spread from 110 to 90 on the put side, and from 110 to 125 on the call side. In the December chain open interest is flat from 120 to 100 on the put side and from 110 to 125 on the call side.

ConocoPhillips, Ticker: $COP

Trade Idea 1: Buy the stock on a move over 115 with a stop at 112.

Trade Idea 2: Buy the stock on a move over 115 and add an October 114/110 Put Spread ($1.30) while selling the November 125 Calls ($1.38).

Trade Idea 3: Buy the October/November 120 Call Calendar ($1.85) while selling the November 100 Puts (80 cents).

Trade Idea 4: Buy the November 100/115/120 Call Spread Risk Reversal ($1.55).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the 3rd Quarter in the books and the September Non-Farm Payroll report posted, saw equities have a seesaw week.

Elsewhere look for Gold to continue its uptrend while Crude Oil possibly creates a new uptrend. The US Dollar Index continues to move to the upside in consolidation while US Treasuries fall back into consolidation. The Shanghai Composite looks to continue higher while Emerging Markets continue their young uptrend.

The Volatility Index looks to remain below normal making the path easier for equity markets to the upside. The charts of the SPY and QQQ look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY look ready to break flags to the upside. The IWM continues to hold near the top of consolidation. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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