Traders of late have been looking favorably on Sunoco (SUN) and have bought it up to fresh 90-day highs. However, several candles have looked curiously doji-like, indicating a correction may be in the near-term future.
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Put buyers also seem to be adding to the pressure, with open interest in next-month puts growing dramatically this week.
A look at the weekly chart also indicates it may be headed to a longer-term resistance area.
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Short-term traders may find profits in shorting the security on an intraday basis as pressure continues to build. Any break higher than 30, however, is a danger sign and would warrant covering quickly.
By Tim Bourquin, trading content director, MoneyShow.com
