Big Oil Ruling the Day

• Posted by Greg Harmon
• on November 7th, 2011

We got into one big oil name today, Occidental Petroleum, $OXY, based on a break of resistance higher using the plan laid out Sunday in the Top 10 Trade Ideas: The Rest (link below). But two others that we have played for a trade in the past 2 weeks are also looking good and worth considering for tomorrow.

ConocoPhillips, $COP

ConocoPhillips, $COP, was played when it broke the resistance at 68.90 for a nice run higher to 73. After pulling back and finding support at 68 it has filled the gaps created on the move lower and is testing the resistance at 72 near the recent high at 73.50. As it gets there the Relative Strength Index is rising and bullish and the Moving Average Convergence Divergence (MACD) indicator is improving towards a positive cross. A move over 73.50 has resistance at 75 and the previous high near 78.50 but also triggers a target on a Measured Move (MM) to 93.

Chevron Corp, $CVX

Chevron Corp, $CVX, is a similar story but it failed to hold the break out of 109 on earnings. But after a pullback to support near 100 it has been moving back higher toward it. The RSI has remained bullish during the pullback and the MACD is slightly ahead of that at ConocoPhillips crossing positive now, supporting more upside. The MM on this name if it gets over 110 is to 122.

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Top Trade Ideas for the Week of November 7, 2011: The Rest

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