Three Oil Stock Charts To Watch Closely…


Presentation Description

These three oil stock charts reveal a stunning clue as to where the crude market may head next.


Presentation Transcript

Slide 1:

Commodity Trading Research Three Oil Stock Charts To Watch Closely…

Slide 2:

Welcome to Commodity Trading Research Your premier site for fundamental and tech nical analysis for profitable Commodity Trading . For more info on Commodity Trading Research visit our website

Slide 3:

Get Your Free Report On The 3 BEST Commodity Stocks for 2016! We’ll tell you about this Special Offer at the end of the video!

Slide 4:

Hi, My name is Justin and I‘m with Commodity Trading Research , today were reviewing our recently published article…

Slide 5:

Three Oil Stock Charts To Watch Closely…

Slide 6:

After a failed breakout attempt in early October, West Texas Intermediate (WTI) crude has fallen back into the same shiftless trading pattern that’s been in place since early September.

Slide 7:

In fact, the closely watched commodity is currently trading at the same price it was two months ago… $46 a barrel. Take a look…

Slide 9:

As you can see, there’s not much to get excited about in crude right now. The technical situation is rather ambivalent while the fundamental backdrop is as murky as ever.

Slide 10:

But take a look at this…

Slide 11:

A number of the world’s largest oil producers are rallying strongly in recent trading. Take Exxon Mobil $XOM for example. The world’s largest oil producer is up 12% in the past month…

Slide 13:

As you can see, $XOM is surging past the 200-day moving average (red line) and the downtrend from the July 2014 highs (green line). This is bullish price action indeed. Believe it or not, a similar pattern is appearing in Chevron $CVX…

Slide 15:

The world’s third largest oil producer by market cap is up 16% in the past month. What’s more, it’s quickly approaching the same technical barriers $XOM just surpassed. And that’s not all…

Slide 17:

EOG Resources $EOG has rallied nearly 17% the past month. Notice how shares of the $47 billion market capenergy producer are trading in a nearly identical technical pattern to $XOM and $CVX.

Slide 18:

A little further research reveals a number a large-cap energy producers are on the verge of very important technical breakouts- just like the stocks above. What’s going on here?

Slide 19:

Why are top-tier energy names rallying while the price of crude trades sideways?

Slide 20:

Quite simply, aggressive energy investors are betting the oil market’s worst days are behind it. With the share price of leading crude producers quickly seeking out higher ground,

Slide 21:

it’s highly unlikely WTI falls into the $20 a barrel range like some suggest. If downside in WTI is limited, it makes sense to put capital to work in the world’s most financially resilient oil companies.

Slide 22:

In other words, the cream is starting to rise to the top in the energy space.

Slide 23:

Now let’s be clear…

Slide 24:

The rally in the exploration names above doesn’t mean oil is about to surge to $70 a barrel. In fact, given the current technical and fundamental backdrop it’s quite likely crude trades in the $40 to $50 range for the remainder of this year.

Slide 25:

However, I’d use any downturn into the lower end of that price range as a buying opportunity.I’m noticing a number of important trends in the energy space that lead me to believe the recent $38 low in WTI won’t be broken.

Slide 26:

As a result, awell -placed long position in crude (or a company producing it) will likely pay in spades as 2016 progresses. What’s the easiest way to potentially capitalize on this situation?

Slide 27:

Energy focused equity ETFs offer investors a relatively simple way to catch industry trends.

Slide 28:

Want More from Commodity Trading Follow us on Social Media

Slide 29:

Want more FREE information on Commodity Trading ? Commodity Trading DOWNLOAD NOW!

Slide 30:

3 HOT Commodity Stocks for 2016 Trading Success! READ THIS  FREE  REPORT!

authorStream Live Help