MRO - Will See $7 Down The Road

MRO is going to have a big tumble after this very steep and unstable upthrust from deep lows.

Has been well overbought on the monthly RSI for some time now.

Also piercing through the 50 month MA will most likely prove to be a shakeout reversal and wick through on a higher time frame candle.

USOIL is deep in a contracting fractal following a blow off top and will likely fall and when it does most probable MRO and all oil stocks will also.

I think MRO will get back to the previous lows of $7 in March '15 which is in the inverted phi 0.618 band taken from the previous 2 and 3 significant pivots.

Bought another 2024 LEAP put recently with very low IV implied volatility. The first one I bought quite early but thats ok, when the collapse gets going IV will expand significantly which will increase the value of my puts.

I think the 0.618 band down the road will be a good area to sell puts and take advantage of high IV in a crash.

Not advice.

Yorum:

Looks much more unstable on arithmetic view. Also notice the spinning top doji which I think is the topping candle.

Yorum:

Down 14% today. Could be the tide is ready to turn.

Yorum:

Back under the 200MA - heading down.