Market Overview

Energy Stocks Preparing A Bounce


2016 was a good year for Energy Stocks as oil and gas prices rose significantly, helping the energy sector to recover from the drop that started since 2014. However, since the recent peak early this year, oil price stabilized in a tight range and failed to move higher before the recent 9 percent drop last week in both Brent Crude and West Texas Intermediate.

Related stocks that established a bullish reversal last year extended their correction lower, but Elliott Wave technical analysis is pointing to an important areas where a bounce higher can be seen in the near term. The coming move will be also supported by an expected bounce in crude oil that will help these stocks to find a floor for the recent decline.

Energy Stocks Elliott Wave View

CVR Energy, Inc. (NYSE: CVI) is currently correcting the bullish 5 waves cycle from November 2016 low as a triple three structure reaching equal legs area $20.48 – $19.56 . The move can extend lower toward the 50-61.8 percent Fibonacci area ( $18.98 – $17.34 ) as a double three but will remain supported as the stock is still looking for a move higher toward at least $31 to finish 3 waves correcting 2014 cycle. If the stock fails to make new highs after bouncing from the current inflection area , then the pullback can extend lower against $12.03 low which should hold to allow CVI to the resume higher later on

Energy Stocks CVI 03.13 Daily

EQT Corporation (NYSE: EQT) failed to make new highs and it’s now doing a double three correction from June 2016 peak which already reached the extreme area at $85.17 with enough number of swings to end that cycle. However in the short term, the stock can still extend toward the equal legs area $50.67 from December 2016 peak before buyers show up to resume the rally or bounce in 3 waves at least while holding above $47.10 low
Energy Stocks EQT 03.13 Daily
Exxon Mobil Corporation (NYSE: XOM) is still correcting an older cycle from August 2015 doing a flat structure from July 2016 peak and currently at the last leg of wave (C) that could ideally reach the equal legs area $79.88 – $76.72 before the stock start bouncing in 3 waves at least. The flat structure is tricky because it can always extend but XOM needs to hold above $66.55 to continue its multi-year bullish trend. Energy Stocks XOM 03.13 Daily

Recap :

Energy Stocks approaching a technical area where Elliott Wave analysis is pointing to a potential recovery in the coming weeks that will be supported by a rise in oil prices. The energy sector still needs a clear break above the recent peaks to confirm a bigger move to the upside that will help these stocks for further gains .

Posted-In: contributorTechnicals Markets


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