COP – “Just The Facts, Ma’am…”*

I spy a buy setup in ConocoPhillips (COP, $65.37).  There was a Fibonacci price cluster of support at the $61.84 – $62.82 area.  This zone included at least 6 Fibonacci price relationships that overlap each other nicely.  There were also a couple of timing projections that came in as we tested this key support.  I’m considering the 2/5 low key and pivotal and will focus on the bullish options strategies against this last low.  In the bigger picture a target way above the market comes in at $77.82.  That I would not expect to see for at least a month or so.  Before that, the next decisions on the way up come in at $68.03 – $67 and $70.07.

I would consider myself wrong if the 2/5 low is taken out.  If you prefer less risk, you can consider having stops below the 2/13 low at $64.23 instead.  March regular option expiration 3/21 is only four weeks away. Extended Weeklys going out to 3/28 might be the best choice (these just added this morning so do not shy away due to lack of option open interest) , April expiration on Thursday 4/17 would be the second choice.  Earnings were reported ~two weeks ago and should not affect the option position.

* quote from Sgt. Friday, Dragnet

No Comments
Carolyn Boroden

Carolyn Boroden is a commodity trading advisor and technical analyst specializing in Fibonacci analysis. Her unique form of price and time analysis is quickly proving to be one of the most promising trading techniques using Fibonacci available today. Ms. Boroden's first book, Fibonacci Trading: How to Master the Time and Price…