HOC Breaks $51 Resistance Yesterday. $56 Next?
First off I want you to look at the graph of Holly Corporation (HOC) that I have attached to this post. I have drawn the resistance lines as seen in red and feel the stock is in a pretty interesting position right now. So first let’s look at the graph:
You can see how it has set itself around these red lines, using them as support and resistance over the last few months. Also take note of the 50 Day Moving Average, because it is now starting to uptrend which gives HOC yet still room to spread. Besides the now uptrending 50 MA, HOC had a great accumulation day yesterday, closing at highs it hasn’t seen since early August. I want to discuss this.
Volume has allowed the stock to press higher, and institutions have been the main driver. But is this a good buypoint? I like to challenge myself as much as possible, and I challenge you to try to forsee a plausbile road ahead for HOC. To me the uptrending 50 MA is now a support line. It’ll take a solid two weeks for the line to move to perhaps $47 or $48, so I ask myself will it be tested before HOC makes the push towards $56 highs from August? Perhaps, and I do think it’ll come in handy when it gets up to $50ish and higher. Let’s look at a short term play.
If the stock closes today above $50.50, I think you have a good buypoint and support to play with. Sticking a tight stoploss at $49.99 would put you in the driver’s seat. If you bought right now at its realtime last of $50.82 and sold at $54.99, you would realize gains of $4.17, or about 8.2%. Your exposure is $.83, putting you at about 5 to 1 on your money. We will see what happens!
Happy Hunting Always.
