Using charts like the one below, you may recall that I had been call for a low in Oil in early 2016 and snap back rally in Oil and Energy stocks.    Since that time, many analysts still called for another price crash, and that includes Goldman Sachs (GS).  Is this important? It is if you missed some of the 100%, 200% 300% gains in some of the energy stocks.

Did you see the news today about Oil by Goldman today? This was the headline.

 

Goldman now says that they can see Oil trading near $50 .  It is $47+ today, up from $26.  That’s a rather late call. It seems that the charts are actually forward looking.  They seem to be 6 months ahead of the fundamentals.  That is an important gap, because as mentioned, now many energy stocks are up hundreds of %.  As a review, I called for Oil to bottom at $26 ( or $24 if price extends) back in November 2015.  This was my weekly chart for premium members, to know what price target we could look for.<

 

In Feb 2016,  we had a Cycle count and Wedge Pattern that pointed to higher Oil Prices.  We had bullish divergence and already beginning to trade Energy stocks, based on their charts. The Fundamentalists were extremely bearish, pointing to an excess of oil, and insisting that there was no way that it could rally from here.  They were calling for Price in the teens.

 

Fast forward since then, and we at Chartfreak have been trading Energy stocks (Or ETFs if that is one’s preference).  Some companies have struggled and filed for bankruptcy, while many others are doubling and tripling in price out of their lows. I encouraged buying a basket of companies to lower the risk.  Also watch for their earnings and possibly buy some after their release.  Lets just review a couple of these companies to see their progress.

Oasis Petroleum (OAS) Jan 29– This was a buy under $5 as it broke from a down trend.

Print Friendly, PDF & Email

Related Posts