Don't Ignore This Chart!

This Energy Stock is Turning Around


NOV - Weekly bar chart with RS and RRG-Lines

On the above Relative Rotation Graph, the Energy sector (XLE) hooked back towards a positive RRG-Heading while inside the improving quadrant. In terms of the JdK RS-Ratio, it is still the weakest sector, but things seem to be starting to improve.

Although the sector as a whole may not be ready for you to fully invest in, there are definitely a few stocks inside the sector that are worth an extra look. One of these names is NOV, National Oilwell Varco.

The chart above shows how NOV dropped from $48 to $18 within a year, from August 2018 to August 2019. After the stock found support in the area around $18, a consolidation process started that lasted a few months and currently seems to be on the verge of being broken upwardly.

On the weekly bar chart, price is peeking above the horizontal barrier at $24.75. If we are able to hold above this level at this Friday's close, the road is free for a rally towards $30, where the next overhead resistance level is found.

From a relative perspective, the RS-Line is completing a rounding bottom and has just started a series of higher highs and higher lows. The RRG-Lines are now both comfortably above 100, positioning NOV well inside the leading quadrant and at a positive RRG-Heading.

When the improvement in the Energy sector manages to continue, NOV could be one of the stocks leading the charge.


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Julius de Kempenaer

Senior Technical Analyst,

Creator, Relative Rotation Graphs

Founder, RRG Research

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Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on in July of 2014. After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers). Learn More
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