Looks like the bearish breakdown failed and it´s time for the bulls. Will wait for a pullback before looking for a trade. If it can pull back to support and bounce off of 10 SMA or 30 EMA it looks bullish.
As with all the other us energy stocks we have been following it has been making a corrective structure for 2016.
This appears to be breaking down as only recently MRO has broken down and out of the lower trend line.
Our trading conditions have been met now with it breaking out and down, retesting & rejecting so this we will be making a short trade here.
MRO tested 10dma and bounced off, breakout over 15.75 with a stop below close on 10dma. All the moving averages but 10dma are pointing up which is bullish for MRO. On a weekly it broke long term downtrend and price is currently consolidating.
MR, getting near to a buy signal. A little further down then a touch of the 50sma will be the BUY signal. The RSI and %R are over sold. 61% retracement is extreme. Should be good to complete 3 drives to the top. Could run to $17.70
With an implied volatility rank of 98 and an implied volatility of 79, MRO presents a good covered call opportunity here with a return on capital of greater than 10% if called away at the nearest short call strike (13).
Here's the setup (which, as always, may require tweaking after NY open, since these off hours quotes have a tendency to have wide bid/asks):
Buy...
