Sunoco looks like it’s building a top to me. It’s been stuck between 95 and 105 for most of the last three months. The fact that the stock is now under its flattening 50-day moving average only adds to my bearish outlook. It tested support at 95 on Friday and bounced about a dollar higher. Despite that I’m bearish on SUN right here, I see a couple of ways to play SUN right here:
- Assume that this attempted bounce off of 95 will propel the stock up towards 105 again and buy here with a stop below 95.
- Wait for the break of the range, either up or down. Short below 95, go long above 105.
On the bright side SUN’s still well above its 200-day moving average so long-term holders (assuming they got in much lower) shouldn’t be too concerned yet.
