07-25-2012, 03:25 AM
Chart-wise, there is a rising wedge forming. If the wedge formation continues, resolution should not be long in coming.
This type of formation usually results in one of two spectacular outcomes -- either a collapse, if the metrics of the wedge indicate weakness; or a surge, if the metrics of the wedge indicate strength.
In IOC's case, the metrics are clearly indicating strength -- higher highs on RSI, MACD and the like, along with all the other reported T/A factors.
An alternative to the wedge resolution would be further sideways consolidation in the low $80s prior to a breakout -- which should be just as spectacular as the aforementioned wedge breakout to the upside.
In any event, I have not changed my target of $130-$140 for the breakout above long-term resistance in the low to mid-$80s.
We have two announcements that could be game changing -- a massive find at T-2, and/or deals on SD, SM, operator, Gulf plant approval, etc. Take your pick as to which comes first.
VS
This type of formation usually results in one of two spectacular outcomes -- either a collapse, if the metrics of the wedge indicate weakness; or a surge, if the metrics of the wedge indicate strength.
In IOC's case, the metrics are clearly indicating strength -- higher highs on RSI, MACD and the like, along with all the other reported T/A factors.
An alternative to the wedge resolution would be further sideways consolidation in the low $80s prior to a breakout -- which should be just as spectacular as the aforementioned wedge breakout to the upside.
In any event, I have not changed my target of $130-$140 for the breakout above long-term resistance in the low to mid-$80s.
We have two announcements that could be game changing -- a massive find at T-2, and/or deals on SD, SM, operator, Gulf plant approval, etc. Take your pick as to which comes first.
VS