With Crude oil breaking a quarter year consolidation, it's time to look for lower quality energy names that benefit from higher energy prices. First lets look at the breakout. The pattern measures to last fall's high near 112.
MPO is an oil co that came public just before a 20% drop in the XLE in 2012. They don't have assets in any of the hot shale plays, so nobody really cares about it. What they do have is an awesome chart that's setting up for an explosive move higher to 9 and possibly 17.
We can see after the wedge breakout it's started to push through the cloud. Now it's trying to break free of the major cloud resistance.
If we look on the Point and Figure chart we see this 6.50/7 level is also huge for it. A break of the red line would signal a change in trend to higher.
Obviously there isn't a clear risk level to trade against nearby, but in this case, the ~6.70 area is the level of risk after it breaks higher.
Trade 'em well!
Disclosure: I'm long, looking to hold throughout the summer.
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