SFY 60 minute Feb 5th
SFY (Swift Energy Co) is approaching the first price target. In this previous update from Jan 14th, I had listed the two near-term bounce targets that I was focusing on (60 minute chart) as well as a potential longer-term target on the weekly time frame. In that post, I had stated “that I am currently viewing SFY and the other energy sector trade ideas mentioned yesterday as short-term oversold bounce trade ideas. However, the potential does exist for these trade to morph into much longer-term swing trades/investments, once again, largely dependent on how crude oil trades going forward.”
Despite the recent bullish price action in crude oil, that statement holds true meaning that I am still only viewing the recent energy stock trade ideas as short-term, bounce trades. In that previous 60 minute chart, as with the updated chart below, I only have the actually resistance levels marked, unlike most charts where I also add the suggested exit price (adjusted slightly below the actual resistance level in order to minimize the chances of barely missing a fill, should the stock reverse just shy of resistance).
In that previous update, it was suggested to set a sell limit order “a few cents” below the resistance levels but to be more accurate, 2.56 is (was) my preferred target (a standing GTC order fill on my position was my prompt to post an update on this trade). With the stock trading at 2.54 as I type and crude/USO getting close but still just shy of the top of yesterday’s gap (resistance), there’s still a good chance that SFY will hit the 2.56 level again today.
As I will never consider (for tracking purposes) a trade as successful if the specific target was not listed before it was hit, I will keep SFY listed as an Active Long Trade with a price target of 2.56 from this point (not counting today’s previous high). That level, although the first of two bounce targets listed on the 60 minute chart, is my preferred and final price target for this trade and as such, SFY will be moved from the Active Trades category to the Completed Trades should SFY reach 2.56 from this point.
The charts on USO and all of the energy stock currently listed on the site still look constructive so by all means, consider raising or trailing stops as any of these trades are officially closed out on the site. I’ve had a nice run with both the precious metals & energy stocks lately and at this point, I’m more concerned with holding onto those gains than trying to add to them on anything but the best looking setups at this point. Plus, my plan was to take advantage of the initial oversold rally/short-squeeze in the energy sector and then trade lightly and more selectively while the dust settles and the charts once again are set up with very clear and favorable R/R entries and exits. Typically, these initial rallies following extreme oversold conditions are followed by very swift & strong price swing & choppy action until it starts to become clear if the bounce was just a counter-trend bounce (before a resumption of the downtrend) or the beginning of a trend reversal (bottoming action).