COP- Divergences suggest bearish reversal.

NYSE:COP   ConocoPhillips
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.
Trade closed: stop reached:
Small loss, Will continue to watch and see if a directional bias develops.

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