The momentum continues to surge towards the energy sector and now the oil services sector. If you have not seen the change in momentum, I'll be hosting a Commodities Countdown webinar 2016-04-28 and you can click on this link to register. Here are a few more stocks adding to the momentum.
ARC Resources (ARX.TO) continues to press to the upside. After breaking to new 6-month highs, it has paused. With the momentum across the industry, this probably has more to run.
Lots of the stocks are really running, but the few presented here are just starting the move. Bonavista Energy (BNP.TO) is starting to look a lot better.
Encana (ECA.TO) has fabulous employees, excellent leadership, and a superb asset base. But the headwinds presented by the declining Natural Gas price have really made this stock a troublesome investment. With a break of the 2-year trendline, a breakout in Relative Strength from the downtrend, and the first signs of spring with an SCTR above 75, Encana might finally be investable. I've switched this chart to weekly. Look at the volume accumulation in March.
Raging River broke out to new 52-week highs but has not been able to surge away yet. Yes, 52-week highs in the oilpatch!
Baytex (BTE.TO) looks like it is ready to break out as well. This is a nice basing structure. I really like the SCTR surging to 75, pulling back and then heading back up. A chart setup like this looks really promising especially with the rest of the industry surging. The volume is strong and the MACD has been staying positive for months.
Here is a little oil company that didn't collapse as much as other small caps in the major energy sector annihilation. I am watching it closely to see if it can perk up. Spartan Energy SPE.TO.
Here is NuVista Energy (NVA.TO) breaking the downtrend. It currently has its highest SCTR ranking since the top of the oil market in summer 2014.
There are lots of great oil charts out there. This is a link to my last blog about the Canadian oil stocks. Hopefully, you have found some entries to participate in. There is almost a total domination of the Canadian top ranked stocks in energy and materials at this point. With the US Dollar continuing to get weaker, these look set to rise. I will be discussing lots of US and Canadian commodity-related trading ideas in the Commodities Countdown Webinar 2016-04-28. At the time of writing, this will be this afternoon at 5 EDT.
If you would like to subscribe to this blog, please click on the yes button below. If you want to follow the oil story more closely, I also write the Commodities Countdown blog. You may wish to register for that blog as well, as you need to register for each blog independently. Click Yes under the article. Lastly, you can get some chart updates between blogs and webinars on twitter. You can click to follow. My Twitter handle is @Schnellinvestor.
This weekend, I will be doing a presentation to the Winnipeg Chapter of the CSTA on Saturday, April 30th. This will be web broadcast outside Winnipeg. Due to a limited number of connections, please attend at a local CSTA chapter if at all possible. Contact the Winnipeg CSTA chapter for more information. Use winnipeg@csta.org
Winnipeg Special Event Saturday, April 30, 2016. 10:45 AM - 5:15 PM EDT
Good trading,
Greg Schnell, CMT, MFTA.
