Is HF Sinclair Going the Way of the 'DINO's for Traders?
As the stock drops, should you chisel away or bail? Here's my technical plan.
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I recommended buying energy company HF Sinclair Corp DINO on Feb. 12, with a $53 stop loss. Unfortunately, the shares of DINO have pulled back in price since early April and DINO is trading below $53.
Let's check out the charts again for a new plan.
In this daily bar chart of DINO, below, I can see that prices have rolled over in the past two-plus months. Prices trade below the declining 50-day moving average line and below the declining 200-day moving average line. The trading volume is not giving me any helpful clues. The On-Balance-Volume (OBV) has been neutral for months now. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero-line.
In this weekly Japanese candlestick chart of DINO, below, I see a chart poised for further weakness. Prices are trading below the declining 40-week moving average line. The weekly OBV line started to decline in May. The MACD oscillator shows weakness since September and is close to the zero-line.
In this daily Point and Figure chart of DINO, below, I can see a downside price target in the $43 area.
Next, in this weekly Point and Figure chart of DINO, below, I can see a price target in the $42 area.
Bottom line strategy: Discipline is key to successful trading. DINO declined below my risk point, so I am gone. (I am not permitted to trade individual securities, but if I did I would be out). Avoid the long side of DINO for now.
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