Extremely bullish sentiment could hurt ConocoPhillips as it faces resistance
The price of oil has been trending lower over the last seven months with the price putting in a series of lower highs since peaking at $66.60 in April. The price spiked in September when the attacks occurred on Saudi Aramco's production facilities, but have since fallen back down as the production interruption was minimal.
With oil trending lower, many big oil companies have seen their stock prices trend lower with the price of oil and ConocoPhillips (NYSE: COP) is one of those companies. Unfortunately for shareholders, the price of Conoco's stock has been trending lower for much longer. In fact it has been trending lower since peaking in October 2018. We see on the weekly chart that a trend channel has formed and the stock has just hit the upper rail of the channel.
It is also worth noting that the 52-week moving average is just above the upper rail and that means the stock will have to fight through two layers of resistance.
While the technical picture is a concern, the sentiment toward the stock could be an even bigger issue. There are 19 analysts covering the stock at this time with 16 "buy" ratings and only three "hold" ratings. This puts the buy percentage at 84.2% and that is higher than the average buy percentage.
The short interest ratio is at 1.7 currently and that is after the number of shares sold short increased by 11% in the most recent reporting period. Like the buy percentage from the analysts, this indicates extreme bullish sentiment.
From a contrarian perspective, seeing extreme optimism for a stock that is trending lower and doesn't have very good fundamentals is not what you want to see as an investor.
Speaking of the fundamentals, Conoco's are below average at best. The company saw earnings decline by 40% when it reported third quarter results recently and sales declined by 1% at the same time. Analysts expect earnings to decline by 19% for the year as a whole.
Looking at the Tickeron Fundamental Analysis Overview, we see a number of poor ratings. The worst rating is the Profit vs. Risk Rating which is at 100. This rating indicates that the returns do not compensate for the risks. Conoco’s unstable profits reported over time resulted in significant drawdowns within these last five years. 100 is the lowest score a company can get in this rating.
The Tickeron PE Growth Rating for Conoco is also bad with a rating of 81. This rating points to worse than average earnings growth for the company. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents. A rating of 1 indicates highest PE growth while a rating of 100 indicates lowest PE growth.
The Valuation Rating is also pretty bad at 73. This indicates that the company is slightly overvalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.
When you put all of this together—poor fundamentals, excessive optimism, and a stock price that is trending lower, it doesn't look good for ConocoPhillips to snap out of its downward trend.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
COP's RSI Oscillator leaves overbought zone
The 10-day RSI Oscillator for COP moved out of overbought territory on September 16, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 instances where the indicator moved out of the overbought zone. In 28 of the 43 cases the stock moved lower in the days that followed. This puts the odds of a move down at 65%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on COP as a result. In 52 of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 58%.
The Moving Average Convergence Divergence Histogram (MACD) for COP turned negative on September 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 25 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 53%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +0.60% 3-day Advance, the price is estimated to grow further. Considering data from situations where COP advanced for three days, in 235 of 347 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 189 of 292 cases where COP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 65%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 14 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 21 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. COP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 55 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.424) is normal, around the industry mean (5.004). P/E Ratio (17.438) is within average values for comparable stocks, (26.349). Projected Growth (PEG Ratio) (1.115) is also within normal values, averaging (1.946). Dividend Yield (0.025) settles around the average of (0.035) among similar stocks. P/S Ratio (2.573) is also within normal values, averaging (5.980).
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a producer of wholesales oil and natural gas
Industry OilGasProduction
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