Don't Ignore This Chart!

Crude Oil And Energy Stocks Remain Bullish

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Crude oil prices ($WTIC) have been hovering between $40-$52 per barrel for the past six months, but the bottoming reverse head & shoulders pattern is telling us to watch closely to see if we can get a confirming breakout on this pattern above neckline resistance at $52.  In the meantime, the energy sector ETF (XLE) remains in a very bullish pattern with rising 20 week EMA support holding on every pullback since breaking above this key moving average in late February.  Check it out:

The energy SCTR has fallen back to the 50 level, but still remains elevated from where it was earlier in the year.  At this point, you should keep an eye on support close to 65 while price resistance clearly is marked at 70.

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
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