Continental Resources ---- Ticker CLR ---
In my weekly review of the IBD Big Cap 20 , I've chosen to review the chart of Continental Resources. This stock has been on a beautiful run since July of last year - giving it a solid year of motion upside with only one down month since then.
Looking at the monthly chart for CLR below, it is clear that it has had a very nice run. More likely than a continuation upward without pause, is a drift into several months of congestion. A profit-taking event is at hand for this one before a chance to add more to the position arrives.
The overlay is showing a resistance zone near 66.5 and another zone near 68.65. These are not areas to go short simply because we can see a profit-taking event on the horizon, but it is a place that warns us that adding more to this position on the upside will carry an expanded risk event.
I have a few alerts set here on this chart as before I move I would like to see evidence that my proposition is likely to be correct. I suspect pullbacks into 62.4 will give me another shot at long continuation here with eyes on 65 as the first target.
The failure to recapture 65 will be a warning of potential lower support testing near 58.76 - that should mark a primary bounce zone so I will follow up this post as my alerts move me into the decision space.
Our broad market sits in congested zones but high fliers like CLR are also showing a slowing of price action. This implies a cautionary space to add to portfolios that have more extended hold times.