Concho Resources Inc. is an independent oil and gas company. The group is primarily active in the acquisition, development, exploration and production of crude oil as well as natural gas fields, whereby the main activities take place in the Permian Basin in New Mexico and western Texas.
In the following analysis, we will examine the stock of the company from a chart-related point of view.
Review (daily chart)
After a longer sideways phase in the first third of the year, the price kept ricocheting off the SMA 200, until it was finally able to exit the sideways phase downwards. After the subsequent correction, once again back to the SMA 200, there was a renewed sell-off with considerably higher volume. Currently, the stock is in a correction and is slowly becoming interesting for short entries, since the ever-important SMA 200 is once again drawing near.
Outlook hourly chart
In the hourly chart, we can see the current running correction, which has yet to develop in our preferred trading direction. For a short entry, one should wait for the formation of a signal, e.g. in the form of a P2, and place the stop loss above the last P3 (depicted in green). Alternatively, and with the advantage of a more favorable stop, one can practice trading out of the correction i.e. the formation of a reversal candle at a significant point.
The targets are located in the areas around $108.00 and lower (see green zones in the daily chart), which makes the stock even more attractive for short entries.
If the price considerably exceeds the last significant high at approx. $134.00, the short scenario should be abandoned for the time being (daily chart, depicted in red).
Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.
Disclosure of possible conflicts of interest: at the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.
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