Energy Services Stock

  • June 13, 2002
  • Derrick Hobbs

TXU Corp.
has been in a steady downtrend since April. Four days ago, TXU hit the 200-day simple moving average and has bounced roughly 3 points to the upside.
This countertrend rally hit a Fibonacci price resistance zone today from 52.36-53.97.
This price zone has 12 levels of resistance. I also have a potential time cycle
high coming into play in the next few days. So with these time and price parameters
coming into play, I’m considering a short trade if TXU fails to clear this zone.
On the flipside, if TXU runs up through these price levels then I’ll back away
from the short side, as this would suggest a possible change in trend.

Derrik

 

 

 

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