CHART OF THE DAY – ENERGY STOCKS BREAKOUT?

ENERGY STOCKS BREAKOUT?

The energy stocks are trying to break out of their two and a half month consolidation, and through a major resistance level. This could mean that the daily cycle decline in oil has been aborted early and the rest of the drop into the intermediate cycle low has been terminated.

If oil has finished its correction and energy stocks are ready to resume their rally, it will add even more momentum to the stock market.
Energy Stocks Breakout
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10 thoughts on “CHART OF THE DAY – ENERGY STOCKS BREAKOUT?”

  2. CaliJoe

    Gary,
    Yesterday’s large uptick in oil looks like a trap on many levels. The entire energy complex is down and resuming their downtrend. Today’s EIA report didn’t help either.
    What is making you so bullish about oil?

    1. Gary Post author

      I’m bullish on everything. Clearly everything is now in a bull market. In powerful bull markets timing isn’t critical. The bull will correct any timing mistakes. Any long position will eventually turn a profit. One could buy oil or energy stocks at the very top of an intermediate cycle and still end up making very good money as long as they hold onto the position and allow the bull to work.

      I expect by the end of the year oil will be at or above $70 and maybe above $80.

      1. Anthonyo

        Yesterday’s OPEC and Saudi price optimism turns into today’s stock pile increase in US.
        But it seems like short term noise… the overall trend in oil, as Gary says, seems to point to up.

        The question is will we see $42 or 200 day MA or not in this current correction.

  3. humbled

    all up and headed north

    biotech seems lagging in upward momentum.. on a relative to broad market basis

  6. ras

    Biotech losing steam, getting hit. Contagion transmission to other sectors? Time will tell.

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