Looking for some stocks with potential? Check out the energy sector — Here’s my take on $XLE $XOP $OIH $CVX $HAL $SLB $XOM. (February 02, 2022)
DEN XLE XOP USO XOI XOM CVX HAL SLB
I want to look at some energy charts here. First of all, Denbury ( NYSE: DEN ). This is starting to look real good. I wouldn’t say just yet, it is still kind of tightening a bit and if you look at where it was just a month ago and then how far it has fallen, it’s 25 percent, that’s a pretty big decline.
The reason that is important is that this leaves a lot of bag holders up here holding the stock. They don’t like it, they’re losing money and so there is going to be some kind of excess supply here. So we want to see the stock kind of flatten out a little bit more showing that it has kind of soaked up that supply, but then at the same time, it’s holding. So it kind of needs to tighten a bit more.
I definitely want to watch this stock and here’s why, you look at the XLE ( NYSEARCA: XLE ), it’s working. Look at the XOP ( NYSEARCA: XOP ), it’s working and it’s really close to really working. And then you look at the XLE ( NYSEARCA: XLE ), it’s working as well.
So all of these ETFs are working really well. They are either breaking out or they are close to breaking out, like this, you’ve got the price of oil ( NYSEARCA: USO ), ( INDEXNYSEGIS: XOI ) working well too. I don’t really track oil that much, just not what I do. You’ve got the price of oil up so energy is still the place to be. It has been that way for a while.
You can look at Exxon Mobil ( NYSE: XOM ), can’t buy it here, too high. Chevron ( NYSE: CVX ), can’t really buy it here it’s too high. You look at Halliburton ( NYSE: HAL ), too high. Schlumberger ( NYSE: SLB ), too high. But these are the ones that you want to be watching and then waiting patiently for a pullback, and that is when you hop on board. If Schlumberger ( NYSE: SLB ) pulls back here, a little more than 10 percent from where it is, that could be a good entry for you.
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