BP
6/20/2010 7:40:40 AM
Just in case you were thinking of buying BP, you need to understand the risks.
Here's an image from one of my computer screens (I trade with 4 screens). This gives me a snapshot of the yearly, weekly and daily view of a stock. I like to see where a stock is in those time frames before every decision to buy or sell.
The situation in BP is very bad. And while this may be a great opportunity to buy a stock that is beaten down and quite a value, it's also very risky.
I always ask people why they would take such a risk with their money - there are so many stocks in the stock market, that are good companies and present good opportunities. Just because a stock is in the news doesn't mean you have to be a hero and trade it. In fact, I'd rather trade the stock that no one knows about.
That being said, if you're going to step in at some point here, there is some technical fibonacci support here.
However, if it breaks these levels, it's going lower, much lower. The market is a popularity contest and the unpopular stocks can get very unpopular... I could see BP in the single digits if support breaks here.
So be cautious.
Regards,
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Author: Jay DeVincentis
Jay DeVincentis
www.stockbarometer.com
Investment research Group,
Inc.
Jay DeVincentis is President of Investment research Group, Inc. and founder of www.stockbarometer.com. Jay worked as an executive in the financial services industry for over 21 years and left to form his own company in line with his passion, the financial markets. Jay Graduated from the University of Massachusetts, Amherst, MA with a Mechanical Engineering Degree. Jay has been advising his clients what to buy and when for over 10 years. He is a market timer, a stock trader, a day trader and a stock investor and also conducts online stock trading classes.
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