Three Oil Stock Charts To Watch Closely…

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

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Commodity Trading Research Three Oil Stock Charts To Watch Closely…

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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 www.CommodityTradingResearch.com

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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!

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

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Three Oil Stock Charts To Watch Closely…

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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.

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

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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.

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But take a look at this…

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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…

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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…

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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…

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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.

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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?

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

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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,

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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.

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

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Now let’s be clear…

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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.

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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.

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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?

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

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