CRK trade ideas
Comstock (CRK)- Bullish Bounce Likely At these LevelsTraders,
Nice little set up for a rebound
1. Buyers are entering the market when the price has not yet touched channel bottom
2. The buying followed through for the next 2 days
3.The buying begun where we would expect it to do so, at an area of strong Fibonacci confluence, which is an area we are inclined to feel is a support area.
4. The very recent trading activity has done a small rounding bottom of indecision candles, with the confirming day for bullish follow through.
5. inverted hammer Harami cross, was followed by doji, and further buying
Now for step 6, we expect to see an open above yesterdays close. I am eyeing 3.98 price will be the approximate price for a nice breakout.
NOTE: There is a a bearish Cypher pattern OR an anti crab forming on this chart (Which I have not marked on the chart) The Bearish Cypher pattern is expected to complete around the 10.20's. Some of you may find this information helpful, as you may use this price level for your profit targets, or to short once at these levels. But I certainly won't be personally. I don't trade harmonic patterns anymore,
Good luck
Tom
Unusual Volume in CRK CallsComstock Resources Inc (CRK) is a oil and natural gas exploration and production company with most of its operations in Texas and Louisiana. The company’s stock is currently trading around $20.00 in a 52 week range of $13.12-$20.12. The stock has performed very well in the past year with shares gaining over 45% in the past 12 months. Options action in CRK during today’s trading session would suggest that traders believe there is more upside to come. Earlier in today’s session a trader bought 6,000 CRK Jun 20 Calls for $1.80. This is a very bullish trade and this block represents volume nearly 5.5 times the average daily option volume in CRK. Shares of CRK are also trading well above the Ichimoku Cloud with the future cloud beginning to slope higher. This indicates the stock is trading in bullish territory and that there could me more upside in the future. We believe that the bullish order flow in CRK and the strong chart are more than enough signal for a long position.
