COP is surging over 5% today following an upgrade(Mizuho goes to ‘buy’). This powerful move is driving the stock to new June highs as the rebound off the June lows stretches to 10%. COP is setting up well for more upside. A retest of the 200D($66.60) may be on the way.
COP has been tracing out a divergent MACD low since last December. Last week the stock began to pierce a key overhead trendline. Today, with the help of the best gain since December 26th, COP is putting some distance on last week’s high. On the downside, a close back below $59.70 would violate last week’s low sending a clear warning sign.
We regard COP as a low risk buy near current levels. At time of publication we are long the stock in some managed accounts.