[Premium] Trade Of The Week

Here's Oil & Natural Gas Corp. stuck below overhead supply near 88 and beginning to trend lower once again. The 200-day moving average is still downward-sloping, momentum is weak, and the stock is showing relative weakness versus its sector and the broader market.

Click on chart to enlarge view.

As a result, we want to be short Oil & Natural Gas Corp. if below 75, with an initial target near 60.

To conclude, the current market conditions suggest a more defensive approach towards stocks is appropriate. If we are going to test the waters on the short side, we want to short things with well-defined risk and multiple themes/factors pointing it in the same direction.

In the case of Oil & Natural Gas Corp., we've got a weak stock, in a weak sector, a potential catalyst in Crude Oil breaking down out of its range last week and an extremely well-defined risk against 75.

For all of the stocks we want to be buying and selling, make sure to review our Trade Ideas page.

Also, make sure to check out our "Three Charts For The Week Ahead." Additionally, check out our broader market update and our top/down take on Vodafone Idea Cellular published this weekend to get our full view on the market's most important themes.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team