With energy stocks becoming a short-term crowded trade of late on the long side, the sector is showing some signs of pausing here. As a result, Murphy Oil is a short setup into Wednesday.
On the daily chart, note the bear flag highlighted. On weakness down towards $60 a short entry can be justified with a cover-stop back over $62.
Overall, many charts are quite weak and sloppy. Bears will, once again, have to force the issue with downside follow-through. If not, I expect more choppy action where cash is likely the best position.
Drop me your top tickers overnight.
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Thanks for all the lovely posts Chess. I am short $DST (with a hard stop) – thoughts please. Thanks.
Thanks Chess for all the great posts. What is your opinion for GILD short on biotech weakness ?
Sadly, The Old Man of the Mountain (Great Stone Face) is no longer with us …
XLE poking weekly BBand! 😉