Top Energy Stocks: Trading Opportunities For Next Week

A security pattern traces the distinct movements of security prices that, once recognized, help traders to make informed trading decisions. These patterns are identified by their vital geometrical elements, which are formed by changing security prices. Let's look at some energy stock opportunities by analyzing these patterns.

Buy Signal for Range Resources Corp. (RRC(Cup-and-Handle)

The cup-and-handle (sometimes called cup-and-holder) pattern is formed when the price of a security initially declines and then rises to form a “U”­ like rounded shape (1, 2, 3, also known as the cup). Once it forms the right lip, it is characterized by short, relatively straight price declines (from 3 to 4) forming the handle.

The declining handle potentially forms due to mounting selling pressure that is created when the security tests its high at the right cup lip. After the sellers give up, the security has the potential to break out to the upside.

Trade Idea:

  • Buy near the breakout (entry) price – 21,07$.
  • Sell at the target (exit) price – 23,08$.

Buy Signals for Warrior Met Coal (HCC), Alpha Metallurgical (AMR), and Marathon Oil (MRO)

Trade Idea:

  • Buy at the opening of the stock market on Monday if the opening price has gone up by no more than 0.5% of the closing price of Friday.
  • Sell after the price has risen by 2% from the closing price on Friday, or at the end of the trading week if the target is not reached.

Buy Signal for Par Pacific Holdings (PARR)

Trade Idea:

  • Buy PARR at the current market price if seen as appealing.
  • Sell PARR after receiving the "Sell" recommendation from trusted analyses.
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