Hess Corporation entry signal given

On Monday, I showed the chart of Hess Corporation (HES) versus SPDR Energy (XLE) with its entry criteria, on the condition that the results announcement would have passed.

The price fell 3.8% on the results announcement yesterday, giving the entry signal that I set out.

Daily chart

There will probably be some sort of short term recovery, possibly for a week or two. As far as my trading record for this blog goes, I will open the short position in the pair at yesterday’s close of 0.92652. The stop loss is above the 21 October high of 0.97054, 4.8% higher. I’ve shown the idea but I can’t micro manage too much.