Today we saw a strong bounce back in oil as crude appears to be putting in a base around $90/barrel. Today’s move doesn’t mean that oil is headed over $100, but the sectors are worth watching. I mentioned a handful of stocks last week and many of those trades have moved up nicely and others are still setup.
From a technical standpoint, the ETFs look really good: OIH and XLE.
OIH top components: SLB,BHI,HAL,RIG,NOV,NE,WFT
Nice falling wedge with the MACD, Stochastics, and MFI all attempting to bottom and turn back up. The major concern is the downward trending MA50. A move out of the top of the wedge and through MA50 will confirm oil is strong again.
Others to watch
CPX through sma50
TTI has a little way to go before it gets to sma50, but it also represents descending trendline.. one to watch at those levels.
SPN over sma50 out of symmetrical triangle
XLE top holdings: XOM, CVX, SLB, COP, OXY, APA, HAL, APC, MRO
Same story as OIH. Nice falling wedge now testing sma150 and top of trendline.
OK. You might be asking yourself why I keep taking about oil stocks. Simple – the charts look good. Falling wedges are one of my favorite seteps for swinging and there are falling wedges all over the place. Only a few may actually break out, but that’s what you’re looking for – strength amongst good setups. Just look at CVX...
Will it turn into CRR?
The key is to find great setups (like we see all over the oil sector right now) then pull out a few of your favorites. When one moves, you’re ready.
More to consider (toss them on daily chart and you’ll see the wedges and channels):
TSO over sma150
RRC over $54 range mice turn sma50 back up comfortably.
SD is consolidating nicely. Watch for sma50 test.
KEG over descending trendline in the 17-17.10 range.