ESSO : Follow NYMEX Crude futures for VST direction.
April 3, 2011 Leave a comment
We gave a big loud buy call on ESSO many weeks ago, when we said it would hit 10 or so by the end of Q1, the stock is in blue skies, and the trend intact, but the risk in the near term – the next week or so is oil futures peak here, geopolitical risk decreases and we get a 8-10 if not 15 dollar pullback in oil.
If this occurs, which is entirely possible then ESSO will be back at 10 in no time, possibly even a tad below. Keep an eye on NYMEX futures if you’re long here, with risk of a pullback still high regardless of Friday’s rebound.