Looking for an energy trade? I’ve got your bogey here with Hess ($HES) (November 08, 2019)


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I want to look at Hess ( NYSE: HES ) today. I am not a big oil and gas guy, not these days, so much of them are just really absolutely down in the dirt. But one stock that I saw, which was actually something that I picked up from our trading forum where we have a lot of active traders in there, is Hess ( NYSE: HES ).

One of our more prominent members, Robert, has been talking about this stock and likes it. It has been trading in a base for a while, a little bit zigzaggy, but the stock looks like it’s going to go higher. So this is all well and good, I think it’s a buy, it’s a little extended so I wouldn’t really be buying it right here. Though, frankly, if you do I think you are going to make money.

But this is why I am looking at this stock; I want to look at it in a multi time frame way. So the daily chart here shows the stock effectively trading sideways for the last several months, since April; trading sideways. I could make a case for kind of a cup pattern, if it’s a cup and handle it is probably something that some kid made in his arts and craft and flunked because this doesn’t look like a cup and handle. But it is zigzaggy and there is some consolidation here. So you are buying right here and maybe just keep a stop, give it about 5 or 6 percent; give it a little room.

Well this is why I am really interested in this chart; you switch to the weekly and you can really get a better sense of what’s going on here because the stock has been trading in almost a volatility squeeze I guess, not quite, the bands are still a little bit wide but very narrow relative to the way they have been. If you are looking at the Bollinger Bands in the aggregate over this chart here over the last several years. These bands are actually fairly tight and this is just starting to squirt out to the upside. I kind of like the way this stock is trading and if oil and gas start getting any kind of bid at all, they typically tend to do that near the end of the year, if they start to get a bid we could see Hess ( NYSE: HES ) move much higher so this is definitely one you want to keep your eye on.

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