Energy stocks (XLE) have been lifted the past couple days due to OPEC agreeing to stem production in an attempt to balance supply and demand. It's difficult to say whether it'll actually work, but thus far the stock market likes what it's hearing. Energy already was one of the best performing sectors as it's risen more than 15% over the last six months. The second best sector? Technology, which is up 9.12% over the same time frame. One oil stock just making a significant breakout is Nabors Industries, which surged yesterday above key price resistance at 11.00. It's continuing that strength today as you can see below:
The volume on Wednesday was very strong, its highest in the past four months as NBR broke out of a bullish ascending triangle pattern. The beauty of these patterns is that they provide us a target. From the top of the triangle (11.00) to the initial low (7.50), the measurement equals 3.50. You add that to the breakout level of 11.00 and calculate a target of 14.50. While the current price is a decent entry, best entry would be a bout of profit taking to send NBR back to its breakout level of 11.00.