Putting Crude Oil Aside

While traders are trying to determine if the crude oil prices have made their low for this cycle, some of the energy stocks are showing signs of a recovery. No one knows if the recent price action from the energy stocks is sustainable or is only a temporary reaction to an oversold condition. As a trader, one can only apply ones best guess based on price action and past observations to put on a trade.

Here are some energy stocks that have the potential to move up in the near term.

CXO could be in the process of forming an inverted head and shoulder price pattern. If the pattern materializes and the price breakout from this pattern, then there is a possibility the price could move up to retest the pivot high near the 148 level.

(click on the chart to enlarge)


CRC a fairly new issue has formed a cup and handle price pattern. If it breaks out from this pattern, it could be headed toward its high near the 9.50 level.



SLB is about to complete an inverted head and shoulder price pattern. When this pattern is completed and the price breaks above the baseline near 88, it could make a move to fill the price gap and beyond.



SM has completed forming a cup and handle price pattern. If it can break from this pattern, the price gap near the Fib 161 extension at 66.51 could be filled.



SN appears to be in the beginning phase of forming the handle of the potential cup and handle price pattern. The potential play from this price pattern could be the 161 Fib extension level near 22.



As you can see from the above charts, there are many positive price actions that indicate potential future upward price movements.

Subscribe to receive email notification on future blog posts. Simply enter your email address under the 'Subscribe To Blog By Email' on the side bar located on the right side of the blog page, or click the 'Subscribe' on the menu.