The share is reaching a technical resistance and could begin a bearish trend.

The fundamentals remain very fragile. The security seems highly overvalued compared to other securities in its sector.

From a technical viewpoint, the proximity of the USD 83.1 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

The graphical configuration argues to establish a short position at the current price. The end of the technical rebound, the consolidation phase and overbought situation: Continental Resources has all the characteristics for short selling. The first objective will be fixed near the USD 75.4 short term support and by extension the USD 70.8 area. This strategy should be protected by a stop loss above USD 83.1.