Oil is bouncing ahead of this weeks’ OPEC meeting. That is a meaningful reversal after oil stabilized around the 100-day moving average.
Taking a quick look through the charts of some of the industry names suggests some opportunity is setting up.
Range Resources
I have used the 60-minute charts to show the move in the stocks following the oil reversal. The green Keltner Channel can be used as a support/resistance layer.
Parsley Energy is also a nice-looking chart. Commodity related trades are known as swing trades. You need to buy near the lows. Parsley looks very strong on the reversal.
Cabot Oil and Gas is also reversing nicely. I like that the down trend in momentum is breaking month-long trend lines suggesting a change in momentum with the rally in price.
Many of the stocks have been in month-long downtrends even though oil peaked out less than 2-weeks ago. The difference between investing in Commodity names and tech names is buying near the lows on reversals. Weak tech can stay weak. Oil names will fall hard as oil pull backs then reverse higher as price of the commodity improves.
Take a look there and see if there is anything for you!
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