/CL (oil futures) – weekly and daily charts :
USO (oil traded ETF) – weekly and daily charts:
Last week we have seen a big down move and putting a new Low low first time since august 2016 and we can say without doubt that OIL from now is weak. The prior pivots for trading this week is 50 and 48.30 on /CL ( 10.60 and 10.25 for USO). As long as /CL hold below 50, stay bearish and watch for follow through to clear 48.30 and after the second trend-line somewhere around 46.30.
If bulls build up power and broke 50, i will avoid this sector.
Knowing these things let’s take a look at the energy sector :
On the weekly chart we see that on 4/11/2016 bulls have broken the downtrend and then, they created a nice trendline ( with violet on charts ) , from which every time price goes up . Also we have a minor downtrend form 12/12/2016 to present. The prior pivots for trading this week is 68.89 and 71.10 on XLE. As long as XLE hold below 71.10, stay bearish and watch for follow through to clear 68.89 and after 67.10.
Oil, Gas & Consumable Fuels :
- Strong Stocks : APC, CNQ, DVN, EOG, PXD, SU.
- Weak Stocks : APA, CLR, COP, EGN, EQT, HES, NBL, NFX, PE, OXY.