ENERGY AND PRECIOUS METALS

The OIL and NATGAS inventory reports were released on Thursday morning, It looks like we can continue making  money from the Energy set ups.

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WTIC –

NATGAS –

Many of the strong Energy stocks pointed out here weeks or months ago are still performing very well.   Do you remember when CWEI was $6.00?  Then the buy at $10 and $15 in CWEI?  CWEI hit $72 today.  WHEW!     CHK was up almost $1, and REI, RICE, ECA, WPX, MRO, ETC ETC are still climbing. Lets look at a few charts…

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RICE-  This was our ‘Buy the pullback test near $24’

RICE –  Back test complete and moving higher.  At $28, it’s not the 50- 100 % gainers we are used to in the riskier stocks, but for the conservative investors, these are reliable. 

REI –

ECA –  Still running to new highs

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So now lets look at some of the smaller junior Energy stocks. As I have mentioned in the past, these can shoot up 20%, 50% even 80 % in 1 day  ( BAS was up 82% Thursday), but some of these can be debt heavy and struggling. Buyer beware, do due diligence or buy a small basket as your own little higher risk/reward etf.  Sell if it goes against you, etc etc .   Over time, I personally have pocketed HUGE gains this way in Energy and Miners, even if 1 or 2 drop quickly.

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MEMP – This set up looks ready to go. I have been holding MEMP for a while, but as price moves into the apex, it often POPS and runs. This is holding the 50sma.

PGH –  This set up is bullish , so I posted this here earlier this week, showing divergence.

PGH – This was setting up heading into an apex too, and suddenly volume began to swell.  I was still recommending buying and mentioned that I added to my position again.

PGH –  The POP out of the apex, this can back test or just keep running. A Back test is obviously a buy if support holds. 

PGH WEEKLY –  And this is the updated big picture. I posted a weekly chart weeks ago too, pointing out the squeeze play and real upside potential. Notice that PGH remains oversold on a weekly.

LGCY – The 200sma and the 50sma have joined on this long consolidation. I bought this break out today and any who bought the break of the 50sma  with me in April probably remember that it tripled and practically quadrupled very quickly after a back test.   I’m not suggesting that that will be repeating this time around, but I do expect a good move higher if this gets going.

LGCY WKLY – Very Oversold and looks to be breaking higher.  That also looks like a quick Shake out on this weekly chart. And buy the way – I bought LGCY about a month ago and I got shook out!   🙂   I took a small loss then, but I’ll make it back many times over if I am right this time.

ALJ – On Aug 4th I was expecting a break out. Earning were released and it was moving higher.  I expected a quick run to former highs. There was a little patch of resistance to the left .

ALJ –  Wow that resistance really bogged this down in the $7-$8 area. It consolidated sideways , but has been a slow & steady mover. The last 2 pops were followed by a bull flag. I think that ALJ is now above resistance and could move nicely from here. At least it is not dropping down much. 

NE – This chart set up is bullish if it breaks out from this wedge. NE  may or may not be doing well.  I know nothing about this off shore drilling and storage company fundamentals. I like the chart, it quickly doubled from here in February, but that could have been a lot of short covering.   I have no position. 

I am going to just put a long list of Energy stocks at the end of this report. I use a list like that to look up their charts and see if they are setting up bullishly. It may just give you something to look at during the trading day if you are bored.  Some may be able to use it, some may not. Don’t worry about it if you dont look up charts, this is for the more active traders by request.  I posted a list like this before.

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GOLD & MINERS –

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The precious metals sector is early in the daily cycle . I would expect another pop and then we can see if it runs and turns this into a bullish reversal or will it roll over into an ICL?

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GOLD -Gold could drop further to tag the 10sma.

GDX – GDX has dropped to the gap twice. It could also drop a bit further and tag the 10sma & fill the gap.

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Enjoy your Friday trading and your weekend!

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~ALEX

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FOR ACTIVE TRADERS: I will often run through a list of Energy stocks ( Or Miners, or biotech, etc) and look for certain set ups in the charts. I posted a list like this in another energy report and some liked to have it in front of them to just browse charts after the markets open.

Click to enlarge. This is a random list of Energy stocks for those that wish to look up charts and see if they are set up bullishly, breaking out, at the low, at the highs, etc. 

HIGHER PRICED ENERGY STOCKS