IOC Chart Request-Follow Up

IOC was a short trade idea on January 26

Here are the updated charts....

 This red arrow is where the original trade idea was, however there was a decent line of resistance there and the 1 thing I didn't account for was that the line of resistance would induce a head fake move in yellow, but we were correct on the bigger picture it appears that the move out of the channel has a large head fake move that would not hold. Lesson: Even in a head fake move, if there's an obvious price pattern, expect a head fake before a reversal-80+% of the time).

 MoneyStream on a daily chart has shown the rally for what it is, a false rally that would not hold and it hasn't.

 Although it broke back in to the channel today, the other lesson we have seen so many times is that of a volatility shakeout on the break of important support/resistance, so I think IOC may move higher and dollar weakness today would obviously help that happen as this is an energy company.

 I would look to short IOC anywhere in the white box, from $50-$55 or so. Also note the HEAVY volume as IOC broke the defined trend line representing the top of the channel, Wall Street has all of those shares as do the shorts, they'l probably want to move IOC up to get rid of them. Also note this morning's parabolic move down, you know how I feel about these, so there's another argument for a bounce.

Ultimately the bigger picture is a move back inside the channel after a head fake and the likely result will be a move to the bottom of the channel and probably even overshoot that on the downside, so there's plenty of potential here.