08/6/18 Trade Idea : Long $COP

Moving forward I’ll be posting my trade journal and closing thoughts.  Hope it makes sense…It doesn’t always to me!!


$COP Tested a support level at the EMA3 and the top of the prior micro pivot.
There is a little runway before the next level of resistance at $71.71

Buy 50 shares at $70.40
Stop loss at $68.36
RSI is 58 and trending upwards
MACD-ML positive @ 0.4318, MACD-MS positive @ 0.0713. Histo @ 0.3605 (above 0.2)
MACD-SL positive @ 0.4149, MACD-SS positive @ 0.2097. Histo @ 0.2052 (line above signal and positive)
MACD-IL positive @ 2.3957, MACD-IS positive @ 2.6873. Histo @ -0.2916

Price action trend change up. (reviewed and noted an error here)
Next target $71.71 for all time high.
Maintain position and stops.

A lower pivot high has been put in place and the stock looks like its moving toward forming a new pennant.
Feels like momentum is leaving the stock and now is the time to exit taking a small loss.
Hold one more day and look for a price action trend change.
(Should have placed a stop under todays close, price had broken through an important level)

Low tested the EMA18 and a price action trend change is in play.
Set stop loss to $68.47
(should have been stopped today, the prior level proved to be resistance and was held at the close)

Stopped out at $68.47. Price action trend change down.
(Shouldn’t have been in this trade today)

Trade Closed : Closed at a loss of $98.55

I’m frustrated with this trade for a number of reasons.

  • My gut told me not to trade the energy/oil sector given the current political landscape but I overruled my intuition and focused on the technicals.
  • I screwed up all my price levels leading me to enter at the wrong point and then sit in the trade longer than I should have.  As a result my loss was roughly +40% of what it should have been.

As frustrating as the trade was, it was great to review my actions and note each of my errors.  These are mistakes I can now eliminate moving forward.

Lastly, note to self; stay away from the energy/oil sector, at least for the next 6 months!

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