Unusual Pattern of the Day: BP Amoco (BP)
Shares of energy giant BP Amoco (BP) are up 53 percent since early November. Shares have had a few unusual moves along the way. However, a recent gap higher, combined with other indicators, suggests a further rally from here.
One of those indicators is a positive MACD, or moving average convergence divergence. This trend shows that money is flowing into shares, after MACD turned lower in late January.
And with the stock’s RSI, or relative strength index, at about 55, shares have room to trend higher before getting into overbought territory. Also, a golden cross triggered in early January, where the 50-day moving average crossed over the 200-day moving average. Overall, signs suggest that shares will continue to move higher.
- Man Who Predicted 2008 Crash: “The Mother of All Crashes is Coming”
If you've watched the movie The Big Short,you've heard of Michael Burry. He was one of the few who no only predicated the 2008 crash but profited from it.
He made $750 million for his investors and $100 million personally when his bet against the housing market paid off. His next big prediction?
He's warning the "mother of all crashes" is coming.
If you have any money in the markets, I urge you to click here and get the exact day of the next stock market crash.
Action to take: With a current dividend yield of 5.3 percent, investors may like shares at current prices. The combination of capital gains and a dividend looks attractive.
For traders, the June $25 calls, trading for about $1.50, offer a compelling strike price and strike date. Shares already hit the $25 range in mid-January, so it wouldn’t take much of a move for that to happen again. And the options are low priced enough that they offer high double-digit gain potential, which could also break into triple digit returns.