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Trading Lessons

Energy Stocks Preparing a Bounce

Commodities / Oil Companies Mar 15, 2017 - 04:17 AM GMT

By: ElliottWave-Forecast

Commodities

2016 was a good year for Energy Stocks as Oil & GAS price rose significantly helping the Energy sector to recover from the drop that started since 2014 . However since the recent peak early this year , Oil price stabilised in a tight range and failed to move higher before the recent 9% drop last week in both Brent Crude and West Texas Intermediate .


Related stocks that established a bullish reversal last year extended their correction lower but Elliott Wave technical analysis is pointing to an important areas where a bounce higher can be seen in the near term . The coming move will be also supported by an expected bounce in Crude Oil that will help these stocks to find a floor for the recent decline .

Energy Stocks Elliott Wave View

CVR Energy (NYSE: CVI ) is currently correcting the bullish 5 waves cycle from November 2016 low as a triple three structure reaching equal legs area $20.48 – $19.56 . The move can extend lower toward the 50%-61.8% Fibonacci area ( $18.98 – $17.34 ) as a double three but will remain supported as the stock is still looking for a move higher toward at least $31 to finish 3 waves correcting 2014 cycle . If the stock fails to make new highs after bouncing from the current inflection area , then the pullback can extend lower against $12.03 low which should hold to allow CVI to the resume higher later on

EQT Corporation (NSYE: EQT) failed to make new highs and it’s now doing a double three correction from June 2016 peak which already reached the extreme area at $85.17 with enough number of swings to end that cycle. However in the short term, the stock can still extend toward the equal legs area $50.67 from December 2016 peak before buyers show up to resume the rally or bounce in 3 waves at least while holding above $47.10 low

Exxon Mobil (NYSE: XOM) is still correcting an older cycle from August 2015 doing a Flat structure from July 2016 peak and currently at the last leg of wave (C) that could ideally reach the equal legs area $79.88 – $76.72 before the stock start bouncing in 3 waves at least . The flat structure is tricky because it can always extend but XOM needs to hold above $66.55 to continue its multi-year bullish trend.

Recap :

Energy Stocks approaching a technical area where Elliott Wave analysis is pointing to a potential recovery in the coming weeks that will be supported by a rise in Oil prices. The Energy sector still needs a clear break above the recent peaks to confirm a bigger move to the upside that will help these stocks for further gains .

If you enjoyed this article, feel free to take a look at our Technical Blog and also check the Chart of The Day .
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By Ayoub Ben Rejeb

https://elliottwave-forecast.com

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 52 instruments including Forex majors & crosses, Commodities and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup .

Copyright © 2017 ElliottWave-Forecast - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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