Has been blasted over the last two months. Expecting a pull back from support over the next month, as produces cut back to regain control of oil prices. Stop loss at 28. Target 1 32+ final 36+
Solid support only exists at 19.60 ~ 23.20 region.
This is a hard falling downtrend. Efficiency for shorting is still higher than longing. A bad news in oil or drop in oil prices send this ETF down 3% daily. Unless when bad news cannot do much to this, the real long investors will come. Still in panic mode for this stock.
LetsBeMillionaire
⋅
I am eagerly waiting for reversal but the way oil stks bleeding, i feel this time it will break this support. Stuck big time in GUSH.
Dgains
⋅
@LetsBeMillionaire, that's rough. Will see what happens next week. Option chain for XOP is heavy on PUTS with a put to call ratio of 7.08 according to Opricot.com. When it gets to that level I have a tendency to see it as a contrarian ,instead of bearish it is potentially bullish. Currently thinking the big guys have sold a lot of PUT contracts and are going to bank on the premiums as it bounces back. Max pain is 35 for XOP which is the market maker's target for for all of the option contracts. Obviously no one knows but if that scenario plays out, will be good for GUSH over the next month.
LetsBeMillionaire
⋅
@Dgains, i saw those heavy puts today. Most of them closed and opened further down side for strike 26. just wishing it doesnt break current support. few weeks back, heavy XOP puts were opened and it seems they closed it and booked profit. They bought Feb strike 28 and 31 puts. Hoping 27 is the lowest but my GUSH wuld go back to 7-8 if it hits that price. Currently closed exactly at the lowest point of Aug 2017. Hoping bounce next week.
This is a hard falling downtrend. Efficiency for shorting is still higher than longing. A bad news in oil or drop in oil prices send this ETF down 3% daily. Unless when bad news cannot do much to this, the real long investors will come. Still in panic mode for this stock.