ConocoPhillips (NYSE:COP) gained 0.79% in yesterday’s session, going up from its prior closing price of $49.31 to $49.70, and has now recorded rally in 3 consecutive sessions. Many in the market will be closely watching whether this winning streak is sustainable or take a temporary pause for the next couple of trading sessions. The stock price went upward in 7 of the last 10 days and has generated 2.07% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 0.02 million more shares exchanged hands compared with prior day. In total, 5.28 M shares exchanged hands for about $262.54 million.
Inside COP’s Recent Trend
ConocoPhillips (COP) lies in the upper part of a wide and strong rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $50.59 will firstly indicate a stronger raising rate. Short-term traders are predicted to see a rally of 13.64% over the course of a quarter and, with 90% chance the price will be floating in the range of $51.50 and $57.49 in this timeframe.
ConocoPhillips Technical Signals
COP has witnessed its short term MA triggering a sell signal. Meanwhile, however, the long-term average has generated a buy signal. When the short-run moving average rises above its longer-term trend, a buy signal is created. This is because a short-run moving average that crosses its long-run moving average counterpart is seen as the initiation of an upward trend. On additional rally, the share price will meet short term resistance at around $49.83. On a drop, the stock is likely to find some support over the long run, which begins at $46.16. A buy signal will be generated if it crosses above the short term moving average. Meanwhile, however, a price crossing below the long term moving average will generate a sell signal. Its pivot point low generated buy signal on Tuesday October 03, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.
ConocoPhillips (NYSE:COP) Support And Resistance Levels
In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $43.66 and $43.24. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $49.97, $50.00 and $50.22.
It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, ConocoPhillips approaches the first support point just current price at $43.66. In case of a break, the next support we will see from accumulated volume is going to be at $43.24 and $43.00. Accumulated volume is going to prevent the price from rising further at $49.97 and this action will lead the price to take a temporary pause or stay muted for a few days.
ConocoPhillips (COP) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.38 between high and low, or 0.77%. The average volatility for the past week stood at 1.45%.
The stock is overbought on RSI14 and the RSI has been falling for the last couple of days. This together with the fact that the stock is in the upper part of the trend poses a possible good selling opportunity for the short-term trader. However, one should note that some stocks may go long and hard while being overbought. The RSI above 70 combined with the trend position poses greater risk so increased volatility should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.