Oil Names Rally Ahead of OPEC

Oil is bouncing ahead of this week's OPEC meeting. That is a meaningful reversal after oil stabilized around the 100-day moving average.

Taking a quick look through the charts of some of the industry names suggests some opportunities are setting up.

Starting with Range Resources (RRC), I have used the 60-minute charts to show the move in the stocks following the oil reversal. The green Keltner Channel can be used as a support/resistance layer.

Parsley Energy (PE) is also a nice-looking chart. Commodity-related trades are known as swing trades. You need to buy near the lows. Parsley looks very strong on the reversal.

Cabot Oil and Gas (COG) is also reversing nicely. I like that the down trend in momentum is breaking month-long trend lines, suggesting a change in momentum with the rally in price.

Many of the stocks have been in month-long downtrends even though oil peaked out less than 2 weeks ago. The difference between investing in Commodity names and tech names is buying near the lows on reversals. Weak tech can stay weak. Oil names will fall hard as oil pulls back, then reverse higher as the price of the commodity improves.

Take a look there and see if there is anything for you!

Don't forget about the special edition of Market Buzz coming up soon! Click here to register for the free presentation. "The Move to Electric" will be live on September 30th.

The Move To Electric!