Commodities Countdown

Some Low Level Signals Flicker In Energy

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Watching the energy stocks get pommeled on the back of low crude oil has been hard. We have seen some beaten down names starting to rally slightly over the last couple of weeks. 

Here is the $BPENER, which broke above the 50 DMA today as you can see in the zoom box.


Another chart that we have been following with the $BPENER is the momentum of the $BPENER's MACD. We have been tracking the momentum low for the $BPENER shown on the MACD. This cyclical low has happened every three years. The $BPENER data has been set to invisible so we can still create the MACD but not have the Bullish percent data noisily soar and retreat between the price labels still shown.

The MACD crossed above the signal line this week which is very bullish. The real question is whether we need a higher low in momentum and a lower low in the $BPENER. The strong energy stocks should start rallying from here if this chart works as it has historically. The weak energy charts would probably make a lower low.

With the harsh breakdown in the $USD on Tuesday, this is a very important place to start tuning into the commodity area. I'll have a lot more on the Commodities Countdown Thursday.

Stay tuned, this could be one of the best trading opportunities for the strong commodities.

Good trading,
Greg Schnell, CMT, MFTA.

 
 
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