Swing Trade Idea – (COP) – October 27, 2020
Our bearish trade for Tuesday, October 27th is Conocophillips (COP). COP is part of the Energy Sector (XLE). XLE has experienced a 2.92% decline in the last month and has been on a bearish trend since June 2020.
COP’s 1M trend turned bearish on October 19th and its 6M trend has been bearish since August 13th. Price has broken below and retested the $32 support level and this provides a good risk/reward entry for a short position. With a technical score (1 out of 10), COP is a very weak stock that will likely continue lower.
As a stop loss, if COP were to trade above $33.00 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $2.16.
