Futures are higher this morning, having traded much lower on Sunday. As a result shorts are covering positions into the Opening Bell. Blocks are heavy above current levels, 220.20-220.60 and open up above this zone. I wouldn’t be shocked to see this gap fade this morning.
Watch List – Energy
Energy candidates populate the watch list this week, on strength in the sector that has lasted for 2 weeks. XLE broke above resistance levels, with RSI, MACD and stochastic suggesting this week could repeat the performance of November. SOTEMA is rising.
Chesapeake Energy (CHK) is trading post-EPS. Price has recently moved above short term resistance levels. Volume caught our attention, as RSI and MACD continue higher. An entry near the Friday close looks plausible, with a stop around 6.60 (+/-).
Centerpointe Energy is showing a triple top. A break above the Friday close on volume would more than likely warrant the attention of breakout traders, as there is very little overhead supply above 24.00. We need to see stochastic and MACD turn back up. Support is just below, with VBP building dramatically below 23.75. EPS was 11/04/16.
U.S. Silica Holdings, Inc. (SLCA ) produces and sells commercial silica in the United States, which is primarily used as fracturing sand by the oil and natural gas recovery companies operating in the US. The recent move is likely connected to comments by President-elect Trump, with regard to fracking and energy independence.
We would like to see price action pullback into the recent rally for an entry. Volume signifies that institutions are positioning for higher prices. Earnings were on 11/03/16.
Watch List for easy reference. Look to candidates herein, with a similar thought process as those stocks mentioned above. The comments section explains in more detail.
Happy Trading – Vinny
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