Oil and Gas Stocks Outlook for Wednesday, November 8
Nov 8, 2017 Trading Blog
Short report today, there are only so many ways to say the market is going up and make it sound interesting LOL. It was a boring day of consolidation on Tuesday with the day nearly forming an inside bar on the chart with a tight 56 cent range. Volume was light with about 13 million shares traded.
The major components all seemed to have held their 8 day moving averages, but XOM really struggled to hold the line. CVX got a nice bounce of it’s line, but SLB gave back a large portion of the gains from Tuesday. Overall, everything looks ok with the major players.
One other thing that should probably start playing into the daily analysis is the SPY, which is really starting to get overextended. I really haven’t been working off of it too much for direction, but I get the feeling that we could get hit soon with a correction. The 8 day ma is almost matching up perfectly with the 8 day for XOM, and I’m not feeling that confident about XOM holding it’s 8 day lately. I don’t have much technically to support that opinion, just feels like it might be time to at least start moving that macro factor up the list a little.
Outlook for Wednesday: I’m looking for another day of consolidation, but we could also be in store for another run up today past the highs from Tuesday. I don’t really see us giving up the gains here and wouldn’t be looking to play the short side at all.
Trading Plan for Wednesday: One trade really stands out today and that is simply watching the open for a dip below Tuesday’s lows around 36.40. Monitor it and see how many stops are below yesterday’s low and then be ready to go long when price gets back inside Tuesday’s range, preferable right above 36.50. At that point, we should see a run to the other side of the range and likely a breakout of Monday/Tuesday highs to see what kind of liquidity has formed up there. Remember, we have the EIA number at 10:30, so be careful being in the market when that gets released. That number could also set up a nice long trade if we get a surprise to the downside. At this point, the buyers are still there and any dip is likely going to be attacked. Plan longs against any solid support and keep the risk controlled, as there could be air pockets if the buyers pull back.