NFTRH+; Energy Sector, Big Picture Setup

For all you Energy sector sports fans out there, here is XOM near a big picture channel bottom by monthly chart.

xom

Unfortunately, Exxon Mobile has already Ex-div’d in August, but those bullish on energy (and I know you are out there) can consider ETF’s like XLE, which div’s quarterly.  Also, there is the constellation of Canadian dividend paying energy companies like ERF, etc., which pay out monthly.  Here is XLE’s monthly chart.

xle

Note RSI on both charts is near levels that eventually reversed into large rallies for a sector that is still in a long-term bull market (major higher highs and higher lows), believe it or not.

Why even look at Energy?  Because the Crude Oil bounce (pulling back today) seemed to be an exclamation point; not on its bear market, but on the potential to mark a short-term bottom and counter trend rally.

Those bullish on the Energy sector can use this guideline on XLE to look ahead…

Buy Target:  55 to 60 (A wide range, I realize.  But investors would probably accumulate through the range and traders might watch for a final plunge).

Sell Target:  75 (or invest, if that is your orientation).

Stop Loss:  Below 55 to suit risk tolerance.

A reminder that chart based NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested. Fundamentals-based ideas are also provided for your further research only. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst.