Beyond The Biotech Space - Whiting Petroleum Corporation (NYSE: WLL)

WLL triangle

WLL has formed a clear resistance at $40 (red). In addition, the stock is climbing a short-term, uptrending support level (green) over the last couple of months.

These two levels combined have WLL stuck within a common chart pattern known as an ascending triangle. Eventually, the stock will have to break one of those levels.

The Tale of the Tape

WLL has an uptrending support and a $40 resistance level to watch. A long trade could be made on a breakout above $40 or on a pullback to the trendline. A break below the trendline support would be an opportunity to enter a short trade.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

The Biotech Trader

Posted to The Biotech Trader on Mar 17, 2015 — 8:03 AM
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