Bull & Bear: ConocoPhillips

Shares of ConocoPhillips COP are trading higher on the session by 0.50%, $72.29. With the recent slide in shares, you have to wonder where they are heading next… Bulls: Bulls will note that ConocoPhillips is consolidating between a downward-trending 50-day moving average and an upward-sloping 200-day moving average. This pattern is nearing a critical point, where shares will either rebound higher or move lower. Given that shares have worked off their overbought condition, value buyers should emerge soon. While put volume spiked last Thursday and Friday, it appears that this was protective put buying by longs. The 3.65% yield is also intriguing. A bullish trader could buy ½ a position in shares right here and sell the August $75/67.50 strangle for a net credit of $3.26. Bears: Bears will note that ConocoPhillips recently broke through an upward treadline; the 20-day and 50-day moving averages are also moving lower. This is an indication that shares have been under pressure. The first major test for bears will be the 50-day; if shares fall from that level, the 200-day moving average could be in jeopardy. A bearish trader could buy the August $70/65/60 put tree for a net debit of $0.90. ConocoPhillips is an international, integrated energy company. The company operates in six segments: Exploration and Production (E&P), which explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids on a worldwide basis; Midstream, which gathers, processes and markets natural gas produced by it and others, and fractionates and markets natural gas liquids, in the United States and Trinidad; Refining and Marketing (R&M), which purchases, refines, markets and transports crude oil and petroleum products, in the United States, Europe and Asia; LUKOIL Investment, which consists of its investment in the ordinary shares of OAO LUKOIL; Chemicals, which manufactures and markets petrochemicals and plastics worldwide, and Emerging Businesses, which represents investment in new technologies or businesses outside its operations.