Trading the Refiners, HollyFrontier (HFC) July 25, 2016
Jul 25, 2016 Oil Stock Scans
It has been awhile since I’ve posted any trades here on the site, but I’m going to get back to it over the next few weeks.
I’ve got one swing trade for today and I have an eye on the refiners. The group looks to be bottoming and oil price seems to be topping out a bit after reaching recent highs. There is some expectation that oil could roll back toward $40.
My favorite pick out of the group is HollyFrontier (HFC) . I’m looking to slide into HFC somewhere around $24 and will be stopping the trade around $23.50, for a risk of $.50. There is fairly strong support on the 20ma around 23.50 for the first point of information. The first target on HFC is $25-25.50, the second target on HFC is $27.00.
The first point of information on HFC is going to be the 50ma sitting in the $25.50 range. Check the volume and see how much resistance there is there. If it looks really thick, take a little off the trade and see if it can break through on the remainder. If it shows strong, then ride the trade for a breakthrough and move to $27.00.
Looking to get at least an average of 4:1 on this one, 6:1 if it can break through the 50ma cleanly.
If this trade stops out at the 23.50 mark, I’ll definitely be watching for another attempt down around 23.00.