Diamondback (FANG) – Permain Basin Slowdown – Dec 2nd, 2019
S&P 500 Market Outlook: Bullish
Bearish Trade: FANG $77.34 – Energy
The bearish DailyPlay we chose for Monday, Dec 2nd is Diamondback Energy (FANG). FANG is part of the Energy Sector (XLE). XLE has declined 1.17% higher over the past month and its 1m and 6m trend turned bearish on Nov 29th and broke below its $59 support level.
Diamondback’s 1m and 6m trend turned bearish on Nov 6th and recently bounced lower off its $81 resistance level. With a technical score of 2 (out of 10), FANG is a weak stock that will likely continue lower.
As a stop loss, if FANG was to trade above $81 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade.