XLE
Oil stocks look bullish to me. XLE weekly log You can see we have had a long sideways consolidation which to me looks like a 5 wave triangle . If US Dollar continues to drop as I favor and with all the global turmoil in oil producing countries it is fertile ground for oil to rise. The dotted horizontal lines I see as resistance. Strong weekly candle last week and break of short term down trend line.
Have great week.
death cross on weeklyoil at potential inflection point, watching for a sharp move lower $ECA $XLE $XOP
CHK Update: Uranium producers await US presidential decisionReflecting on our positions and where this trade is likely to trade
Encana Corporation: Stup*d CHEAP!!!Consistent growth, profitable, SUPER cheap relative to broad valuations! A rising oil price over the coming years will lead to earnings estimate increases!
Update CRUDE OIL: 7.238M barrel build - CAUTION... to finish after I was rudely cut off, options returns are a bell curve based on duration, you never want to hold them until expiry unless you are planning on taking delivery!
(*Note to tradingview - performance should increase for paid subscriptions)
Update CHK: Ascending triangle ready to breakout!Section 232 Uranium tariffs this month is likely to be a driver on the natural gas price ultimately pushing Chesapeake higher!
Update USOIL: API inventory BUILD shows signs of a topAPI data released at 4.30pm EST on Tuesday show a "surprise" build, however, with expected weakness in hard data there should be no surprises. EIA data will either confirm or deny API's release.
Update USOIL: Expect a reversal in Crude Oil around this areaCrude has reached and surpassed our expected target of $61.60 for a reversal. Look for weakness into the close of day today.
Update COPPER: What does copper stay about the economy?Recent price action in copper looks terrible.
Update USOIL: Look for a reversal here...We can see slight higher highs from here, however, I expect to see a reversal somewhere between the current price and $61.60
Natural Gas low in place, 20% upside from here!With section 232 Uranium tariffs around the corner, natural gas is lining up perfectly for an event-driven opportunity to get long!
Update USOIL: $61.50 first, then $52Commodities are typically the last asset to peak during a cycle. We typically interest rates peak first, a couple of months later that followed by equities and a couple of months after equities we see commodities peak. Commodities such as crude oil, are part of the contraction phase in the cycle, the higher the price rises it begins to acts as a tax on consumers and that begins the early recession phase. For that reason, I have marked this rally in crude as a wave A of a bigger corrective pattern.
Update CHK: Position is hedge but performing VERY wellChesapeake is likely to see some real buying into April if section 232 tariffs on Uranium are passed (high probability)
Update USOIL: I bought put on Crude Oil65% of crude oil demand is derived from gasoline, with economic conditions weakening we are now switching from supply side issues to potentially demand-side issues. Watch for lower levels of demand for Crude over the coming weeks.
XLE - Bearish Inside Bar Pin Bar Fake OutAn inside bar / pin bar fake out pattern has formed on the XLE weekly chart. This pattern has formed just below a key resistance level as well as the 50% retracement of the last swing high/low, which is exactly the area we want to see this form. One negative with this setup is that price has formed a very sharp v-shaped reversal off it's lows. That doesn't mean that the pattern is untradable but it does mean any trades taken here need to be aggressively defended, and profit targets not be too aggressive.
UPDATE: Why is USOIL rallying?Would love to hear your perspective in the comments sections below!
Have a wonderful day!
