Trading the Trend: long Tullow Oil
Tullow Oil’s share price has resumed its uptrend and we wish to buy it on a minor retracement lower with an upside target of around 49p and a stop loss at 31.5p.
(Video Transcript)
Short Chicago wheat was a good call
Hello and welcome to Trading The Trend on Wednesday 6 September 2023. About a month ago we went short Chicago wheat and as you can see here on this daily chart that trade worked out really, really well. We now got out of that short position at around $6. So that one is done.
And a few weeks ago we also went long the US dollar versus the Chinese yuan. And you can see here that we also are still in a positive trade here. Since we went long around $7.20 perhaps you may wish to raise your take profit stop level to perhaps just below the last reaction low here at $7.2390 or so.
Or if you want to you can get out now of this trade. But anyway it's a positive trade as well. And then last week we went long the NASDAQ 100 and did so around $15,220, I believe. So here we are currently about $220 in profit as well.
So again you can now raise your take profit stop level to your entry level and therefore your risk is reduced to zero. And you can either get out here or try and let it run. So these were the previous trades we had on.
Long Tullow Oil shows promise
And today's Trading the Trend, what I would like to do is to go long Tullow Oil. Now this is the FTSE 100 oil exploration company and it had a pretty sharp 12% sell-off just a few days ago on news that there was a military coup in the African country Gabon and that worried investors but basically it didn't really affect their production at all.
And then with the oil price rising also the tallow oil share price regained all of its losses, previous losses and also added to some profits and nearly went up to 40p or so. So what I would like to do, since there is a very nice uptrend in place on this chart since around May of this year, is buy on any minor retracement to the downside Tullow Oil shares.
So anywhere between the 38p mark and perhaps the 36p mark with a stop loss just below 31.50p and an upside target around the 49p mark. So today's Trading the Trend is to go long Tullow Oil on a minor retracement lower with an upside target of around 49 pence and a stop loss at 31 pence 50.
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