Looking to me like the downtrend in energy stocks is just about played out. XOM and CVX are sitting on multi year support levels. They are also sitting right at their bottom bollinger band on the daily and weekly time frames along with the XLE. If you go to Finviz and take a look at Dig and Dug you will see they are testing the extreme top and bottom of their respective ranges. Line and Lnco charts have some work to do for me to get bullish but a rising tide may lift all boats, they certainly are oversold. I think DIG is looking really juicy here for a nice pop. XOM also printed a bullish engulfing candle today for an extra clue to the puzzle.
A 10 to 20% move in either direction would not surprise me. At this point I would say the odds favor the move to be down to test the old lows or maybe make new ones.
Just think how fast the numbers will improve when oil recovers. No way oil stays down long enough to make Linn go bankrupt.
Starting to see some capitulation volume in USO. Been doing a little bottom fishing and will look to add some blue chip names if we get another down day like today.
He is the Planned Parenthood Poster Boy!
Looking to me like new lows are on the way. Bottom bands on the weekly charts are very close with the RSI reading still well above oversold.
Line and Lnco sure picked an odd time to put in a reversal. WTI continues to breakdown today. My short term target for WTI is $55 which is the middle band on the weekly chart, if it breaks that level it could fall all the way to $44.50. Hard to imagine Line/Lnco keeping the rally going if that happens.