This Oil and Gas name is still near the highs. Let’s look at: $BSM – September 13, 2022
BSM XLE OIH
This is Scott with your Chart of the Day. At Stock Market Mentor we are still looking at some of these oil and gas names, like XLE ( NYSEARCA: XLE ) and OIH ( NYSEARCA: OIH ). For the most part, although it’s been choppy, they’re still in and around some of their key moving averages. That is one of the reasons why I don’t think we should give up completely on the oil trade just yet. I want to keep an eye on them even just so that I know what energy is doing.
I was doing some scanning today and I came across Blackstone Minerals LP ( NYSE: BSM ). As you can see BSM ( NYSE: BSM ) has a history of coming near its moving averages and then printing some higher lows. Back here in December of 2021 it really kind of broke down under the 50-day through the 100 EMA, through the 200 EMA, but once it bottomed it started printing some higher lows here. You can see, back here in June we hit a high of around 17.30 and broke down through the moving averages. Once we found a floor, boom, moving average, support, higher low, higher low.
This is a stock I definitely want to keep an eye on because not only is it near the highs it’s still printing higher lows. What I want to see from BSM ( NYSE: BSM ) is a strong move across this clearly defined level of resistance, it doesn’t get much clearer than this. Resistance, resistance, resistance, resistance, it couldn’t get through there today, but I want to see it get above and stay above that 16.45 level.
Now, buying breakouts in this market has been hard as I am sure you have known if you are a breakout buyer. So I would definitely want to keep an eye on this. Maybe get a starter position close to the moving averages and then you will want to add on strength and a strong close above that downward-sloping trendline.
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