Energy stocks have been strengthening throughout 2016 and Helix Energy Solutions (HLX) is a small $900 million market cap company that just broke out his past week. Its SCTR rank has quickly soared to above 90 after recently printing SCTR readings in the single digits for several months. Check out the chart:
The breakout occurred near the 7.00 level with volume expanding. A pullback to that 7.00 level with lighter volume would represent a solid reward to risk entry point. The rapidly rising 20 day EMA, currently at 6.47, should also provide solid support.
Happy trading!
Tom
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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