Energy broke above a 4 month consolidation yesterday, as we see in the weekly chart. Many industry groups in the energy sector moved higher as a result. This bullish continuation points to 161.8 Fibonacci extension and VBP as our near term targets. How long we take to get there is another story, therefore we will reassess these industry groups in the weeks ahead.
The Energy heat map shows an overall bullish look to this group. Data courtesy Finviz.com
Focus your attention on sub-industry groups, as some stocks are performing better than others. Oil and Gas pipelines are in focus as President-elect Trump highlighted their importance in his plicy statements. Wall Street listened, And, so should you.
KMI and RDC are on the weekly watch list. Both are trading post earnings. RDC beat by 2900% (0.01 vs 0.30). KMI gapped higher to start the week. Spectra Energy (SE) was a previous buy, which stopped us out on its recent move lower in October. It appears to be headed to recent highs along with WMB.
The big caps in oil and gas industry group look set for a bullish continuation into the winter months. Most of these candidates are setup, though I don’t have time to chart them all. Suffice to say Due your own research.
EQT reported an earnings beat on 10/27/16. The company surprised analysts with a 40.91% increase over consensus estimates. COP also reported on 10/27/16. These two stocks show institutions are involved as volume is above average.
All of the energy stocks in the Independent Oil and Gas industry group show RSI rising. Most show increasing volume, as well, showing institutions see potential in the energy sector.
This shouldn’t be viewed as the only sector of interest, as we continue to rotate our focus each day into each sector. Our intent is to bring you observations that may profit the team short term.
As an example, discount retailers should be moving this morning. DLTR reprted a beat pre-market.
This holiday shortened week will likely lead to lighter trading volumes, so be aware volatility could pickup. Be sure to check earnings dates prior to any new position.
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