Keep Oil And Gas Stocks On Your Radar For A Potential Big Move

By Justin Smyth of Next Big Trade

Independent Trader • Sep 5, 2019 at 4:31 AM EDT

If gold entering a powerful Stage 2 uptrend is the surprise of 2019 then the only thing that could top that is a big move higher in oil and gas stocks.

If gold entering a powerful Stage 2 uptrend is the surprise of 2019 then the only thing that could top that is a big move higher in oil and gas stocks. Once a loved sector in the first decade of the 2000s, oil and gas stocks are now universally loathed and with good reason. Most of them are Stage 4 disasters and have terrible looking charts.

However, what is interesting about oil is it’s been tightening in a narrower range right under the 30-week moving average for over a month in perhaps the tightest trading range in a few years. The chart looks to me like it could be setting up a surprise move higher and which would go along with the recent strength in gold.

CRK is a natural gas play that is attempting a Stage 2 breakout this week on what should be its biggest up volume week of the year. If we get a move higher in oil I’d expect more oil and gas stocks to start breaking out as well, although there are quite a few oil and gas stocks that are still in Stage 4 with a large amount of overhead resistance. The key will be finding the stocks with the least amount of overhead resistance possible to uncover stocks with the best potential.

Disclosure:

I am long CRK.

Disclaimer:

The views and opinions expressed are for educational and informational purposes only, and should not be considered as investment advice. The author of this website is not a licensed stockbroker or financial advisor. Nothing contained herein should be construed as a recommendation to buy, hold or sell any securities or financial products.Always seek the advice of a financial advisor and do your own independent research prior to making any trade or investment decisions.

We do not guarantee the accuracy or completeness of any information on this website. Such information is provided “as is” without warranty or condition of any kind, either express or implied. Past performance may not be indicative of future results. Information could include inaccuracies or typographical errors.

We are not liable or responsible for any damages incurred whatsoever from actions taken from information provided above, including financial losses. Since all readers who access any information on this website are doing so voluntarily, and of their own accord, any outcome of such access is understood to be their sole responsibility. In no event shall we be liable to any person for any decision made or action taken in reliance upon the information provided herein.

STOCKS IN THIS ARTICLE

Comments

Back to all articles