Playing a multiple bottom. Energy has been trading down while the rest of the market has been setting new highs leading me to believe this sector has been overlooked. Usually Id wait for price to break the 50EMA but with the multiple bottoms showing a strong support level, I believe entering now before the bullish EMA cross over is not that big of a risk.
Price has formed multiple bottoms on the lower trend line which has proven to be quite stable. As you you can see on the charts, the price pattern has started to form a wedge. The wedge pattern, the multiple bottoms, and price testing the 50ema, leads me to think this is setting up for a bullish run.
According to ValuEngine, one of the better analytics firms, oils and energy are the most undervalued sector right now. VE estimates that this sector is undervalued by about 32%.
Meanwhile, crude oil is in an uptrend. OPEC is looking at supply cuts, geopolitical tensions with Iran are heating up, and US crude oil inventory just posted another large supply draw. In...
Energy has lagged the resilience in oil price. Geopolitics now looking to give the underlying another impetus higher. ERX represents 3x diversified majors but could be expressed via single names with high leverage to oil price.
erx after an incredible run has pulled right back to major support with markets going green here we could be in for a multi-day bounce here. this looks decent for a swing entry with a 2 dollar stop . there is no resistance till the 35-36 area for a first target