Thursday, October 4, 2007

Slick patch for CNOOC buyers

CNOOC Ltd. (CEO) fell again today, which is no surprise. As I wrote yesterday, there is a significant gap that may or may not be filled for the stock. It ran from 125 to 171 with hardly a breather in the past four weeks. Today's 1.6% drop to 154 was welcome. Volume declined, and the stock actually hit an intra-day low of 149 before bouncing.

At 149, CEO was nearly 13% down from its all-time high. Quite a plunge in just four sessions, but that's the nature of the crude oil market today. Was today the turnaround point? Who knows?

Pupule says: Buy small. Though the stock is below its 10-day moving averages (SMA is 161, EMA is 158), I'd like to see volume shrink significantly on a down day tomorrow first. Conversely, I would not be surprised to see CEO run back up from this point.

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