8/29/2022
If Friday gave you a headache, you’re not the only one…
I think most folks anticipated a drawdown considering the recent test of the downward trendline on the SPY, but that was a rough ride.
What does that mean for this week?
Shaky hands… volatility… focus on mid to large caps… commodities…
But I tell every trader this: Relax.
And right now, oil is getting bit of a lift…
It feels strange doing this, but we’re checking out the daily chart.
I played with the time frames quite a bit and found that for this stock’s personality, the daily backtested more accurately.
Let’s dig in.
The stock has climbed above all major areas of Resistance in the last week.
Frankly, the only real areas to be aware of are the sub-$6.00 mark (red arrow) and — if you are exceptionally bullish — the previous run’s high at ~$8.60.
Master Support is in the range of $3.15-$3.70.
Speaking of the last climb, take a look at the green arrow pointing to the green column.
This is a signal that I use showing the bullish 8/13ema crossover. It’s not a beacon to immediately go long, but a signal.
And that’s playing out again as of Wednesday…
However, Chris Hood’s Squeeze 4-Pack did give me a signal to go “Long” prior to this under the purple candlestick.
(Purple candlesticks tell us higher prices are expected within 3-5 bars.)
On the lower chart, that same indicator (second one down) shows a slight loss of momentum with the 5-period oscillator printing dark green, although the higher periods are still bright green…
Still, I wouldn’t be too concerned here with the composite Stochastic line moving higher as noted by the black dotted arrow…
Looking at the Volume, HUSA has had numerous days where trading has broken above the average…
This is one of those clues I’ve talked about in the past.
Aiding the bulls is the next chart down of the Short Volume which has been on a steady decline.
Expect volatility here and watch for a potential run…
Keep moving,
(Disclosure: I hold no position in HUSA, but intend to initiate a position in the next 30 days.)
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