Hot Energy Sector Stocks
Oil and Gas has remained unloved for much of the year with many of its component sectors languishing in the weakest 10% of the market. After the spike lower lower in crude 2 weeks ago the subsequent recovery as so far translated little in terms of individual oil stocks and Energy Sector Stocks. However Friday saw a slew of buy signals in a variety of ETF’s including XLE,DIG,IYE,IEO,and RYE. When drilling down into what there main holdings are many of the components are the same between them, but with a slightly different weighting here and there.
Many of the stocks have been under pressure so I have gone through the holdings, shown the technical picture for each ETF and identified the best 3 opportunities.
Starting with the ETF’s we begin with IEO.
After drifting slowly all year it has finally reached and major weekly support and posted one of our RSI Divergence based signals on Friday.
IYE has done likewise but now has hit a zone of support which represents weekly (black) and monthly (blue) support. It also posted a positive pattern last week.
XLE is similar but the zone of support represents two weekly time points.
DIG is also at weekly support.
Finally RYE which is equal weighted has the most condensed and powerful zone of a weekly and monthly.
Top 3 Energy Sector Stocks
Having scoured through the top 20 holdings in each ETF here are the three with the best set-up. The criteria were that in a similar vein to the ETF’s the stocks must be close to major support so that risk is easily quantified. The positions would be deemed to be incorrect if price makes a weekly close below the support points.
Energy Sector Stocks #1
First up is NFX Newfield Exploration. It has held weekly support and positive a positive pattern on Friday. More importantly what was monthly resistance has moved to lows and become support. This opens up space for price to move up.
Energy Sector Stocks #2
Second is DVN Devon Energy. Whilst no pattern has appeared it has twice held major monthly support. If price subsequently moves above $40.43 this opens up space to attack $50.69.
Energy Sector Stocks #3
Finally is HP Helmerich & Payne. This was mentioned in a report some months ago and has finally reached the major monthly support point. Friday saw it post a PowwerPlay buy signal. If price can move beyond $62.24 this would also open up space for to attack $85.78.
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