Traders Eye Sunoco (SUN)

09/24/2009 12:01 am EST

Focus: STOCKS

Tim Bourquin

Co-Founder, The Traders Expo and The Futures & Forex Expo

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

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