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Crude Oil & Energy Sector Analysis

Both /CL (crude oil futures) and USO (crude oil ETN) have bounced back to resistance following their recent breakdowns while the energy stocks, shown here via XLE & XOP, have also bounced back to resistance following their respective breakdowns. All charts below are 60-minute time frames.

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Oct 5, 2017 12:09pm|Categories: Equity Market Analysis, Gold & Commodities|Tags: , , , , |4 Comments

4 Comments

  1. btm October 5, 2017 12:36 pm at 12:36 pm

    Hi Randy, speaking of XOP, can you give some thoughts about XCO and CIE? Thank you.

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    • rsotc October 5, 2017 1:16 pm at 1:16 pm

      CIE still has bullish divergences forming but only potential, not confirmed as the PPO is pointing down. While it looked to be setting up for a potential reversal a couple of months ago, it never participated in the rally with the rest of the energy stocks & is starting to get close to the precarious 1.00 share price level… and that is after the 1/15 reverse split back in June… not a good sign.
      CIE is extremely oversold & I would put good odds that it will have an oversold/short-covering rally sooner than later but I’m not so warm on that stock at this time. Plus, my near-term outlook for the energy stocks is bearish so one less reason to look to go long CIE in addition to the fact that I don’t see any technical reason to either.

      XCO started to get some traction after that divergent low & falling wedge breakout, clearing T1 on a momentum overshoot but fell back below the key 1.50 level & has remained below it since. Until & unless it can regain 1.50, XCO could eventually go to the wayside (i.e.- bankruptcy) as could CIE.
      I like these low-priced, high-risk energy stocks at times when the sector outlook is bullish & the charts confirm a long-side trade but I don’t see either right now.

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      • btm October 5, 2017 1:21 pm at 1:21 pm

        Thank you Randy, prepare to load some mining stocks, then.

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        • rsotc October 5, 2017 2:09 pm at 2:09 pm

          Y.W. Watching the Dollar, Euro, gold, silver & GDX for the next objective entry & I might start scaling into some or all of the first 8 PM stocks that I highlighted in the video earlier today once it seems like the counter-trend bounce in the dollar has likely run its course.

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