The Canadian Technician

Bullish Percent Indexes Oil and Gold

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Today's comment is how oversold the energy sector is.

THe Bullish percent index is a measure of the % of stocks in a group that are on Point and figure buy signals. Buy Signals are stocks with a recent breakout above a previous column of x's.

Fore more on Calculations and explanations of Bullish Percents, see this article.

Bullish Percent

Take a look at the Energy sector Bullish percent Index.

When this level is above 80% it means the majority of stocks making new highs.

When it is greater than 50% it is an important place to look for rallies.

When it is below 20%, it is very weak. But once it starts turning up, it usually sees strong moves towards it from value investors.

Todays chart is a little busy, but follow the logic. On the chart is the Canadian XEG.TO  - ETF. Now this Bullish percent calculation is actually off the US market, but it is important to use Canadian ETF's on the Canadian Technician's site!

Compare the location of the green lines on the chart with the price of $WTIC as well as the Bullish percent levels. Check the MACD levels, and how significant this low level is on the charts. This is a 13 year chart.

It may not mark the absolute bottom, but it does mark an excellent entry point (with a stop!)

$BPENER

You can click on the chart for a very large version.

Yesterday, I mentioned a $BPGDM was at 15%. So what is that? That is the Bullish percent chart for the gold miners index.

Here's the chart.

$BPGDM

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Good Trading,

Greg Schnell, CMT

 

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More