Time to sell Hess (HES)? (June 24, 2014)
I want to look at Hess ( NYSE:HES ). This is a stock that we’ve been pounding on for a while, actually we haven’t been pounding on it we’ve just been riding it. It’s been a really nice trade, but I would say it’s time to sell. You could sell the whole thing, sell half, but whatever you do this is a pretty substantial pull back. Nothing wrong with the uptrend, but if you’re traders you’ve got to look at this trend line and realize that this is a pretty significant pull back, it’s closing near the low of the day, there’s not a whole lot of buying interest.
You can see we’ve had a lot of green bars here, that’s great, but more and more of them have been below the average prices, so I think it’s time to sell Hess ( NYSE:HES ). As I’m doing this the low is 96.82, the stock’s trading at 96.86, so let’s just say there’s more downside than upside. Try to use this type of pattern when you’re considering taking profits on stock that you’ve been really long on, that you’re doing really well on. Now you could say, “Well then should I use this to short?” No, because the stock is in a nice uptrend there’s obviously demand there for it and when you’re shorting a stock based on this you’re effectively calling the top and saying, “I think this thing is going to implode.” You don’t want to do that, just say, “This is a stock that I want to avoid for now.”
Free Chart