It’s Time To Get Back Into Energy

At the beginning of May we pointed out that energy stocks were set for a pullback. Now after dribbling lower for the last month it’s time to get back into energy equities:

 

XLE_Daily_6.5.2015

A large bullish outside reversal following this morning’s stronger than expected employment report holds added significance for a few reasons:

  • XLE opened below the lower Bollinger Band
  • ~$77.50 is important support/resistance
  • Many large integrated oil names have just tapped major support (CVX at $100 for example)
  • Crude oil has its most bullish period of the year historically between July and September – moreover, a low is usually put in place during June

Lets see how the week draws to a close and as always we will be posting real-time trades in the ‘Trading Room’ at CHAT.CEO.CA