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