Last week the Organization of the Petroleum Exporting Countries or OPEC announced that the group had to come an "agreement" to reduce oil production. The new deal slated to cut production from an estimated 33.2 million barrels per day down to 32.5 million barrels per day.
While some Wall Street analysts don't believe the production reduction will actually happen, the fact remains that since OPEC made the announcement, the price of oil is up rather dramatically. Prior to the announcement oil was trading around the $44.50 range and has since jumped to the $50 range.
The crude oil rally has been really quite pathetic suggesting a move into the lower Fibonacci support zone is likely. We're trading it through XLE with confirmation from the US Dollar. Plus, we uncover how to trade trend reversals using Elliott Wave.
Oil's free-fall hasn't been kind to offshore or onshore drillers. A quick look at the Energy Select Sector SPDR (XLE) is evidence of weakness in the industry.
Chart courtesy of StockCharts.com
Since the summer of last year, oil has fallen from over $100 per barrel down to to less than $45 per barrel. For the past few weeks though, oil has been on an uptrend. It now stands at around $56 per barrel and investors are clamoring to get back into the very stocks that were sold off over the past several months. Continue reading "Don't Underestimate This Oil and Gas Driller"→
In today's video, I'll be examining nine different sectors of the economy and analyzing their trends using SPDR ETFs. Out of the nine different sectors, I'll be looking at three of these sectors with strong uptrends, while the remaining six sectors are in a transition stage.
I will, of course, be applying the Trade Triangle technology to each of these nine sectors so you can clearly see how to put each of these sectors to work you.
Picking bottoms is not something one should do if you're going to be a successful trader. But looking at market that may be forming a bottom is a good exercise, and one that you should be doing on a regular basis.
I had done this before gold reversed to the upside traded over $1300 an ounce. Maybe it's time to look at crude oil and see if it's beginning to set itself up for a move to the upside.
Technically, the Trade Triangles remain negative on crude oil, so there is no reversal showing up with those technical tools.
The story is a little bit different with the RSI indicator. This particular indicator is showing that there is a big positive divergence on the Energy Select Sector SPDR ETF (PACF:XLE), and it is one that spans months.
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