Crude oil has bumped back above the MA 50 and bears watching here. In this morning’s update it was noted that commodities are not interesting until there is a reason for interest. This is a preliminary one.
Note that WTIC did this once previously and dropped back (yellow highlight in Feb.). If this one holds it could end the consolidation in favor of a rally.
MACD is triggered up just below zero, RSI nudged above 50 and AROON is on a positive daily trend. It looks constructive. A drop below the MA 50 puts it back in grind mode and hence, takes away my interest.
Rather than play oil directly I am going to watch some energy stocks, including Canadian dividend payers ERF and BTE for the IRA (where dividends will not be taxed in the US) and other items in the sector. As for the US sector here is an update of XLE…
It took me out of my position when it dropped below 80 (as noted would be the case) but if crude oil turns up, NatGas firms and XLE finds support here the play could still be on.
I own nothing energy related at the moment (and may not), but am showing some pictures for consideration with oil making a little hint at the MA 50.
