Trade Plan: Short PWE
Though I dislike trading oil and natural gas, PennWest seems like a fairly low risk short trade. TSX ticker is PWT, but I prefer NYSE-listed [[PWE]].
Trade: short PWE
Entry: today’s close or on morning pop
Target: $12.15, once reached, I may move the stop to this level and let it go to maybe $11
Stop: $0.50 above entry
Potential profit: $1.30-$1.80
- Barely touched the 50dma, but couldn’t break above it, even on fairly strong volume
- Bumping against strong resistance at just under $14
- Unfilled recent gap up from $12.15
- RSI(3) – short term – is at an extremely overbought reading, 96
- Stochastics also showing it’s overbought
I’m hoping for a quick and simple trade. The stop is tight as oil may take the stock above resistance in a flash.
Wouldn’t mind buying this back for its insane yield but not yet.