Oil inventory data will be released tomorrow morning, as it is every Wednesday. Normally, I could careless about the event, however oil needs to be monitored here.
You have three things working here: a possible uptick in demand as the economy starts to show signs of life, Memorial Day Weekend/Summer Driving season, and a beautiful bullish chart.
Let’s take a look at [[USO]], the ETF that tracks oil, what do you see? I see a possible inverse head & shoulders (bullish), a possible cup & handle (bullish), and all short term moving averages below the stock price (pretty damn bullish to me).
With all that said, I will be looking to buy a little more [[DXO]] here. DXO is the double long crude oil ETF, and it’s technical setup is just about one of the best you will find.
This is what we are looking for:
Everything about this chart screams buy, everything from the way the moving averages line up, down to the beautiful doji that printed today. If we see oil prices rise after the inventory report, we could see a significant rally in Black Gold.
I will be screening stocks tonight in the oil & gas sector, and will post my results in The PPT.
[[DXO]] is your bone. If you enjoy the content at iBankCoin, please follow us on Twitter
Nice R/C!
I noticed that on USO in my weekend scans.
also overbought and due for pullback.
SCO may be a much better play for a swing.
When it looks 2 good 2 be true,it usually is.
Was watching NOV for a breakout above $35-$36.
RC, are you going to wait for tomorrow morning’s data before piling into oil names or will you be buying today?
thanks RC
Well RC, I paid for PPT, but can’t get in, so your above comment doesn’t helpme! Emailed the fly’s people…waiting…waiting…
Really good post RC.
jaydog, I’ll talk to IT.
RC buys LDK @ 9.47
RC–u buying rock?
not yet, but i did buy APL.
$LDK ripping
$JASO ripping