Want to be a trend follower? Get on the trend early…and it’s easier to follow. Here’s your trade on Whiting Petroleum (WLL) (June 06, 2016)

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WLL USO XLE QIH XOP WLL 

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I want to look at Whiting Petroleum ( NYSE:WLL ) here. An alert went off on our Stock Market Mentor alerts today, about Whiting Petroleum ( NYSE:WLL ), I’d set it a bit ago. And the idea was that this stock was close to breaking out. It had first really come to our attention back here when it had broke above the 200-day moving average on volume. Now, oil ( NYSEARCA:USO ) was just breaking out as well. XLE ( NYSEARCA:XLE ), up at the top of the range. OIH ( LON:OIH ) up strong that day too. XOP ( NYSEARCA:XOP ), up too.

So you look at Whiting Petroleum ( NYSE:WLL ) and the stock was not in just a good technical place, but it was in good company. The whole sector was starting to pop. And so the idea was, alright, well lets buy this. Or at least lets keep an eye on it. But frankly, on something like this, it’s okay to buy it. If you’re trying to make a day trade this isn’t your stock. But if you’re looking to get in on a stock that’s likely moving higher, it’s giving you a real bullish indication, and the fundamentals of the overall sector look good, etcetera, etcetera. Then you buy this stock and then you can see it’s drifting sideways, not really doing anything. And then, boom! There it is, we get phase 2 of this.

So the stock is continuing to move. This would be a point, actually, where you would be adding to your position. If you bought initially here, you’re adding to your position. Whatever stop you had on the position that you bought here, you did put in a stop, didn’t you? Then take the original position size and the original stop, slide it up so that the number of shares that you bought here, with a stop, wherever you put it, just have one, here, here, here, wherever it is. That same number of shares you now apply to wherever this stock is here, and you just slide the stop up and then you’re buying more. And you’re buying more, and you’re having a different stop.

My point is this, if you’re going to be getting involved in a stock, you need to have multiple entries. You can buy all at once, and hopefully God willing and the creek don’t rise, you’re going to make a lot of money. But if you really want to be managing risk, then you have to be taking multiple entries. But it all starts with a good chart and a nice breakout. And that’s what we have here with Whiting Petroleum ( NYSE:WLL ). So I would just say, hang on to the position. The trend is your friend. It look like you can see there’s a big change in character in this stock. So as long as the stock continues to move, essentially on this channel like this, you’re good to go.

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