Conoco’s Strength Is Hard To Ignore

The market’s leadership has become noticeably narrower, with many of the names that carried the rally earlier in the year now stalled or working through consolidations. Against that backdrop, energy remains one of the areas where strength is showing up across a broader group of stocks, helped by elevated energy and refined-products prices. That relative strength led us to ConocoPhillips (COP), where short-, medium-, and long-term trends are aligned, price has pushed into fresh 52-week and all-time highs, and perhaps most importantly, COP has begun outperforming the S&P 500 over the past several months. With the broader index losing some momentum, COP’s ability to continue pressing higher, displaying impressive relative strength, and separating itself from S&P 500 is exactly the kind of behavior that lands a stock on our team’s radar.

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There are several ways that I would consider to trade a setup like this, from simply owning the shares to using an option for greater upside participation with a smaller capital commitment. One approach would be a slightly in-the-money call, giving the trade some built-in stock exposure while keeping the amount of capital at risk more defined than buying shares outright. As a hypothetical example, if COP were to gain 10% by expiration, the call we’re looking at would be on pace for a 94.9% profit potential—a result that depends specifically on the stock’s actual price, option pricing, and time remaining, and is not guaranteed.

When market leadership narrows, finding the few stocks still showing real technical strength can take hours of research and constant monitoring. That’s the problem my Weekly Profit Opportunity Newsletter is designed to help solve: each week, I personally hunt across the market for one of the most compelling setups I can find, then break down the chart, the technical case, and how I’d approach the trade in a full video newsletter—and it’s just $1 for your first month. Click here to start your $1 trial and let me put my latest trade research to work for you.

Wishing You the Best in Investing Success,