SouthWestern Energy Co. (SWN)
I just recently bought OCT 40 PUT options on SWN. Technicals show it dropping off the rictor scale. My instincts were right, but now I am in my second PUT feeling even a bigger sell-off is going to happen. Am I wrong I think? Did the support finally hit? 3 peaks going down, will the trend keep going up now? SWN follows very closely to EOG Resources (EOG). If $64 for Crude Barrel Inventory is the support price that “keeps the oil industry profitable” then I should be buying CALLS right now. I still feel oil has a way to go down unless a swarm of buying persists this week. September technically being a sell-off month going into October. Oil is still at all time highs and I believe it is running out of steam. I could be wrong and I will know by the end of this week of Sept.
SWN Daily Chart showing PUT trade in September 2006.
Currently I know Oil Holders Investment Trust (OIH) shows a support level at around $125 a share, and with todays rise of 5% across many energy sector stocks it makes me wonder if we are about to go for an upward ride. Remember the energy sector is down 7% right now which could be between 5-20 pts depending on which stocks you follow. Right now energy looks like a bargain at discount lows, but lows can go lower. In the next fews days I’ll re-comment on this post to make my decision.
My OIH price support analysis at $123. I was right. Bounced all the way up to $140.
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