Don't Ignore This Chart!

Two Oil Stocks You Might Want To Consider

 | 

The Dow Jones U.S. Exploration & Production Index ($DJUSOS) is 39% higher since its January low and two mid-cap stocks that are outperforming include $4 billion QEP Resources (QEP) and $2.9 billion WPX Energy (WPX).  They have both been overbought recently and now have printed negative divergences, but their relative strength, along with solid SCTRs suggest they could be bought on pullbacks.  Both charts are similar, so let's focus on one example - QEP:

The pink arrows are typically what I look for in terms of retracement after a negative divergence prints.  An upcoming 50 day SMA test would be worth considering for entry.

Happy trading!

Tom


 

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus