Light Sweet Crude Oil prices are edging higher (/CL $78.75) this morning, after climbing to their highest levels since 2014.
Summary
This price comes after OPEC and allied major oil producers decided to maintain restraint on supply, despite global demand for oil outpacing its supply. An OPEC+ panel recommended that the group stick to its existing policy of increasing production by 400K bbl/day next month.
MarketSmith Growth 250
The stocks in the list below are ranked by percent gain as of Monday’s closing bell. 10 of the 12 are energy stocks from the MarketSmith Growth 250.
All of these candidates showed relative strength on Monday, so we’ll watch for continuation in the Tuesday trading session.
“It’s very clear, any sort of move from here is likely to go up to $65, and then you’re going to see a topside breakout,” – Piper Sandler
The Energy Sector
The Energy Sector ETF (XLE) looks ready to break out of its cup without handle base. Depth of the pattern projects a $10.00 (+/-) increase if this industry group maintains its pace into year end.
Volume has been above average and the groups RS line is making new highs, climbing to 86 this week.
The S&P Energy Sector (XLE) ETF is moving higher again this morning, up (+1.48%) trading $55.55 as a bid keeps hitting energy stocks.
Craig Johnson, chief market technician at Piper Sandler, is bullish energy. And, “It’s very clear, any sort of move from here is likely to go up to $65, and then you’re going to see a topside breakout,” In addition, “You’ve made a beautiful higher low on a multiyear basis when you look at that XLE chart.”
A move to $65 implies more than 18% upside.
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Happy Trading,
Vinny
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