Bearish Head&Shoulders Formed

2016년 9월 15일

CVX is one of the most bullish stocks I have seen so shorting this will be tough but a head and shoulders has formed and support has been broken by a bearish candle with good volume. I think the stock will retest the neck line for an entry and then trade down to the 200-simple.

Here is the setup
Trigger: 99.36
Stop:101.01
Target 1:96.07
Target 2: 92.93

***Thoughts***My thoughts on CVX is that when gas was trading around this same price last year the stock was trading around 85-90/per share. It has had a bullish run up for the summer which was predicted in an early post you can link to below but I think the stock price comes down with the less travel demand. CVX is also keeps financing the dividend with debt which I believe is a bad idea. If oil doesn't move up, CVX will have to lower the dividend. If this happens I believe we see 2015 Lows. I will be a buyer

2017년 2월 8일

노트

A good example of why you should always use a stop and never try to short CVX