Oil jumped 4% today on the news. The various charts check out, too.
Oil is breaking out of a wedge and may continue towards its large inverse H&S target.
I'm adding to the three companies I already own.
Oil is breaking out of a wedge and may continue towards its large inverse H&S target.
I'm adding to the three companies I already own.
Trade closed manually:
Sold CHK, AREX, and 75% of OAS. I didn't sell at the peak so only marginal gains. CHK and AREX haven't really run, maybe due to weak fundamentals.
Overall:
- Bearish rising wedge on XLE
- Questionable fundamental outlook on oil remains
- Much better opportunity in precious metals
Overall:
- Bearish rising wedge on XLE
- Questionable fundamental outlook on oil remains
- Much better opportunity in precious metals
It a game where for every buyer there is a seller. You look for signs of accumulation and you try to trade on the side of the big boys who are many times more patient and prescient than you.