The bullish setups across the energy complex of crude oil, heating oil, natural gas, and rbob gasoline has big implications for energy stocks from here into year-end. And potentially further on as well.
I like the breakout to new highs for the Oil and Gas Exploration and Production ETF (XOP). And we can also see that today’s chart shows a breakout in relative strength performance (vs. the S&P 500 ETF – SPY).
Here we can see that the relative performance chart is breaking out as well. And I believe it will get to the recent highs as an initial target. This is a sector that I like and plan to add to.
Some stocks I like in this sector include CLR, FANG, DVN, EOG, HES, COP, DVN and OXY. I also like refiners PSX and VLO. MPC is emerging from a base and has great potential.
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.