Energy Stock Update

With Crude Oil in a nice continuation setup, there are lots of related choices for all the stock traders out there. Here is what Crude looks like on the Daily chart:

Related stocks

Helmerich & Payne (HP)

Petrohawk (HK)

Nabors Industries (NBR)

Keep an eye on these oil related stocks as the Crude Oil trade continues to develop.

Be Prepared

nate mccartney

Comments

[Brian]

Question on the Crude Oil setup:

While the stochastic is showing a possible false bar stochastic continuation to the upside, a Red XLT break down is also setting up. The oscillator is also showing that the momentum has reversed from up trending to down trending, which cancels the Type I trade (I know the Type I didn't set up, just the Stoch Continuation).

Thoughts? (My reading was done on QM - Crude e-miny daily chart with default settings)

[Nate McCartney]

Brian,

You are correct in that the XTL is red on the QM (Crude Oil Mini Futures) chart. However, you really only want to execute an XTL Breakout trade whenever a Wave 3 is expected in that direction. That is where the XTL has its power. We are not expecting that here. It is true that the Oscillator is showing negative here as well, but we are not looking at a Type One trade. The setup is a Stochastic Continuation, and no signs of a counter trend short are showing here. If we breach 62% retracement to the down side, then I was wrong, and I will be ok with that! :) I'll trade being wrong for cheaper gas in my wife's Suburban!

Be prepared!

nate mccartney