NBL bearish gap down
There are a lot of energy stocks, which have gapped down, on our list today. Many provide near-term sell opportunities but I felt the best of them was NBL.
Looking at pivot highs and lows on the weekly chart, NBL seemed to have plenty of room to manoeuvre (about 800 points before the next major support). The daily gap down (on higher volume) broke below longer-term pivot highs (and the recent pivot low) as well as $50. The breakout bar was bearish and price is trading below the 200ma (weekly and daily).
While I don't trade fundamentals I do feel that it is the fall in oil prices which may well have affected so many energy stocks. So trading oil may be a more straightforward alternative to shorting correlated stocks.
Looking at pivot highs and lows on the weekly chart, NBL seemed to have plenty of room to manoeuvre (about 800 points before the next major support). The daily gap down (on higher volume) broke below longer-term pivot highs (and the recent pivot low) as well as $50. The breakout bar was bearish and price is trading below the 200ma (weekly and daily).
While I don't trade fundamentals I do feel that it is the fall in oil prices which may well have affected so many energy stocks. So trading oil may be a more straightforward alternative to shorting correlated stocks.
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