HollyFrontier Long HFC - Bullish divergence on weekly and dailyHolly Frontier Corporation
Bullish divergence on Weekly and Daily
Weekly
To be precise, it’s not a pure divergence. Prices dit not really go lower then the previous bottom. But in light of the global market recovery and the hard hits that the Energy sector went through, it is likely that it will at least pullback during these bullish developments we’re seeing right now, perhaps even a reversal.
The trend is down.
But we did hit the previous bottom only for a very short while, resulting in a down wick. it rejected that price level obviously, there where no more sellers there and the price turned up. Last week the market gapped up and only went higher.
It resulted in a nice channel divergence for sure. Meaning, the previous bottom was around the -5 ATR level, with a lot of power. This down move only went to the -2 ATR level. MACD-H is turning up as well, and diverging, as is Elder Force Index.
Stochastic RSI has crossed up, and %D is turning up as well, coming from an maximum oversold condition.
Only troublesome thing is that the weekly also shows an upwick, to the -1 ATR level but went down again to only close a bit higher then the previous weeks close.
Let’s have a look if we can find more certainties on the daily
Daily
There are two bullish divergences as well here, and the price has risen to above the value zone. After the price turned up, the last candle gave up the gains of the previous day. This is a nice oppurtunity, as long as this does not topping out completely ending the upmove.
Also, Stochastic RSI seems to cross again and it is overbought.
The trade is surely interesting and I will enter in thirds.
The rest will be added by keeping an eye on the 4H chart to see when MACD-H is ticking up again and forming a next higher low on this timeframe, and then decide to add to the trade.
Monthly:
I have checked the monthly as well, and the impulse is turning yellow here, but the candle is only halffway.
It also shows it fell through the support level. This will be a resistance level when this trade pans out.
The trade could become more interesting if we pinch through that level and the monthly will turn up again. It could then become a bigger move to the monthly EMA.
Interesting to keep an eye on this Timeframe as well.
Entry: 1/3 @ 20.87
Stoploss: 18.7
Projected targets:
Target 1: 29.25
Target 2: 33.63
R/R ratio: 1:3.86
R/R ratio: 1:5.88
Note:
As the trade develops, ATR levels change as well. It could be that I move up my targets, as in my trading style, the targets are dynamic.
I will exit in thirds as well. And move a stoploss when a higher low has been formed.
I will try to update the trades here as well, regarding changed targets and stoplosses.
Hollyfrontier
HollyFrontier Corporation: Buy Opportunity on multiple signals.HFC is currently testing the August 01 High (53.90) and 1D Resistance after a non-stop 15 day bullish sequence that nearly made 1D overbought (RSI = 72.486, STOCH = 79.880, MACD = 1.560, ADX = 60.274). If we convincingly break above that level then 1D will print the Golden Cross formation (MA50 over MA200).
The same pattern was last seen in 2017 and resulted in a +70% rise on a January 2018 Top. The RSI is also replicating a similar pattern. Based on that we are bullish on this stock aiming on the medium term at 65.00.
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