Investing.com - Financial Markets Worldwide
🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

ConocoPhillips: Better Off As Friends

ByDragonfly Capital
AuthorGregory W. Harmon
Published 09/30/2012, 02:42 AM
Updated 05/14/2017, 06:45 AM
COP
-
AWRE
-
COP
-
RSI
-
PSX
-

April 12, 2012 ConocoPhillips (COP) divorced, spinning off Phillips 66 (PSX), to "unlock shareholder value." This is the common stated reasoning for spin offs but most suspect that insiders benefit more than shareholders. And looking at the charts of both, that stereotype was reinforced….for about 6 weeks. Since then both have been screaming higher, giving little opportunity for a clean entry. That may be about to change. Lets look at the charts.

ConocoPhillips (COP)
COP
ConocoPhillips (COP) has been in a rising channel since early June. The latest pullback is finding support at 57 and this looks like a good level to enter long against. The Relative Strength Index (RSI) is bullish and holding the mid line with a turn back higher. There is only the previous top near 58.50 keeping it from a breakout of the current flag to the upside target at 60.50, with the price objective of the 3-box reversal Point and Figure chart (PnF) at 65 above that.

Phillips 66 (PSX)
PSX
Phillips 66 (PSX) has also been running higher since the beginning of June. It is consolidating in a bull flag with a top at 47 and has a target on a break out higher to 51. The bullish RSI supports a move higher here as well. If you can only pick one then you should also be aware that the PnF price objective for Phillips 66 is all the way up at 85.

So maybe the stereotype is not always right. Moral of the story: Pay attention to price action and not investing folklore.

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Original post

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.