We entered into a full position in OIL back in January at $25.35. Shortly after OIL busted through resistance at the $26 zone and rocketed to $30 earlier this month. Today OIL closed at $29.55 down two cents. Now two pennies is not much, but it might be setting up a double top right here at the $30 zone. Notice how the volume has trailed off as the shares have risen, going all the way back to the huge volume spike in March. This is what a pullback looks like. Will it occur? There is no way to tell, but I will bet anyone anything that OIL has failed to break $30 and I will hold that bet open until it does.
Right now we have about a four dollar profit in OIL. We will not sell here, preferring to let the market take us out. So, lets move our stops up to $27.35, the 50 dma to lock in some profits.
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