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