The XLE, ETF for the energy sector, is close to cracking the $84 level, just above, which should unlock a run towards the 2008 highs. In gauging the validity of this attempted breakout, I continue to key off two stocks which were at the center of the 2008 run-up: Fluor and oil services giant Schlumberger. Fluor is an engineering and construction firm with plenty of exposure to oil and gas.
As you can see on both respective weekly charts, below, stretching back many years, those obvious triangle patterns–denoting a debate between buyers and sellers of lower highs but higher lows–are close to resolving higher. With crude failing to fall apart like many had anticipated, the bull case has these patterns resolving up and out imminently. The reason for that sense of urgency is because the longer these symmetrical triangle patterns drag on without resolution, the less bullish it becomes as buying power dissipates, and the odds of a breakdown increase.
I am looking at FLR with a $67 trigger, and SLB needing to clear $85 initially, and then eventually $95.
Two names which continue to intrigue me in the oil services space: ORIG YPG, both foreign firms trading here.
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Yea SLB is a great setup — like CVX more lower beta & better fundies but technically solid opportunity.
Thanks, you have been all over CVX this year.