Good Vibes at ConocoPhillips

 | Jun 12, 2013 | 9:00 AM EDT  | Comments
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Stock quotes in this article:

cop

I've set up ConocoPhillips (COP) for a buy entry, so let's start by taking a look at a daily chart.

ConocoPhillips (COP) -- Daily
Source: Dynamic Trader

First, I like the bigger-picture pattern of higher highs and lows. Second, I like that the price is above both the 200- and 50-day simple moving averages. Third, I like the symmetrical pullback I'm seeing within the uptrend. Last, but not least, I like some of the Fibonacci timing parameters at the recent low -- as these suggest that a low might already be in place.

As far as price is concerned, I see two standout price support zones that include what I call "symmetry" projections, or measured move, illustrated in red on my chart. The zones come in at between $60.52 and $61.43, and then at the $59.50-to-$59.96 area.

Now let's take a peek at some timing parameters. If you look at the pink histogram on the chart, you'll see a clustering or confluence of Fibonacci time cycles that came together at the most recent low.

Also, as you can see on the chart, I have labeled the timing of a few of the prior corrective declines, which lasted 10, 12 and 16 trading days. The most recent pullback, into the top support decision, has lasted 11 trading days so far -- very similar to a couple of the other declines. I love to see this symmetry when comparing swings in the same direction!

On the 30-minute chart, a buy trigger has already fired against the June 6 low, and that was followed by a pullback in Tuesday's session. This is where I entered a position in ConocoPhillips, and I am placing my stop below the $60.52 area. If the price continues to hold above the June 6 low, the bigger-picture first target comes in around $65.80. Target two comes in at the $67.12 area. Compared with the potential reward on this setup, I believe the risk is reasonable!

For more information on using trade triggers, please refer here

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