Oil stocks have rallied recently over the last few days. While it would still appear to be a volatile time to look for entries some charts are starting to form bases longer than a few days.
The big names are always in focus north of the 49th but there are some interesting tickers that have much better chart patterns.
- Parex PRX.TO
- Total Energy Services TOT.TO
- Advantage Oil and Gas AAV.TO
Here is Parex Resources (PXT.TO) with an SCTR of 95.9. Nice break above resistance yesterday with follow through today. $11.10 will be very interesting resistance.
Total Energy Services (TOT.TO), which is different than the global energy giant out of France, also has a nice chart package. It continues to test this $16.00-$16.50 level which suggests that enough buyers are showing up to pop this ceiling. Just by looking at the chart, we can see that the price action has been much better than the price of oil which recently made lows below the January levels. The SCTR has been above 75 for a month suggesting the strong price action in the stock.
Lastly, Advantage Oil and Gas (AAV.TO) continues to climb. This was a nice breakout yesterday with more being added this morning. This chart looks so different from the rest of the energy sector.
I will be popping out some oil charts on Twitter as well, so join me @schnellinvestor if you would like to see more trade ideas. Don't forget stop levels. We are currently in a bear market chart pattern for the indexes.
Good trading,
Greg Schnell, CMT
