Catching Energy Stocks on the Rebound: EPE, JPEP, GNE

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Energy stocks have been through some tough times over the past few years due to overproduction and global uncertainty.

Catching Energy Stocks on the Rebound: EPE, JPEP, GNE

Source: ©iStock.com/Gudella

But oil prices have risen steadily this year after having suffered a steep drop from mid-2014 until the end of 2015.

Due to a lack of investment in these sectors, global oversupply is now under pressure. And while the China-driven commodity boom may be behind us, robust demand for commodities from India is just beginning to hit stride, elevating prices in the process.

With a complex bottom in place, this could be a good opportunity to pick up energy stocks on the cheap, especially if we are looking at stocks that are breaking out of bullish technical formations.

We used Profit Scanner’s Technical Event Screener tool to discover energy plays that look to have already found bottom and are poised for big gains in the months to come.

Rebounding Energy Stocks: EP Energy Corp (EPE)

Rebounding Energy Companies: EP Energy Corp (EPE)EP Energy Corp (EPE) is the first on our list. It’s an independent exploration and production company that is engaged in the acquisition and development of unconventional onshore oil and natural gas properties in the United States.

It operates through a diverse base of producing assets and is focused on creating value through the development of its drilling inventory located in four areas:

  • Eagle Ford Shale (South Texas)
  • Wolfcamp Shale (Permian Basin in West Texas)
  • Altamont Field in the Uinta Basin (Northeastern Utah)
  • Haynesville Shale (North Louisiana)

The price of EPE has broken upward out of a consolidation phase, suggesting a continuation of the prior uptrend. A bullish “Symmetrical Continuation Triangle” pattern consists of two converging trendlines as prices reach lower highs and higher lows.

As you can see, volume diminished as the price swung back and forth between an increasingly narrow range, reflecting uncertainty in the market direction.

Then, well before the triangle reached its apex, the price broke out above the upper trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior uptrend.

Profit Scanner’s intermediate-term target price range is between $7.40 and $7.80 per share. If the conservative end of the target range is realized, investors would see gains of about 22%.

Rebounding Energy Stocks: JP Energy Partners LP (JPEP)

Rebounding Energy Companies: JP Energy Partners LP (JPEP) JP Energy Partners LP (JPEP) owns, operates, develops and acquires a portfolio of midstream energy assets. The company provides midstream infrastructure solutions for the supply of crude oil, refined products and natural gas liquids (NGLs) in the United States.

The price of JPEP seems to have reached the end of a period of “accumulation” at the bottom of a major downtrend, and the push through key resistance signals a reversal to a new uptrend.

The “Head-and-Shoulders Bottom” formation is created by three successive declines in price following a significant downtrend. The lowest low (head) is in the middle, flanked by two higher lows (shoulders) at roughly equivalent levels.

Volume is highest as the price makes the first two declines and then diminishes through the right shoulder. Finally, volume surges as the price closes above the neckline (drawn between the two highs) to confirm the reversal.

Profit Scanner’s long-term target price range is found between $14 and $15.50 per share. If the conservative end of the target range is realized, investors would see gains of up to 66%.

Rebounding Energy Stocks: Genie Energy Ltd (GNE)

Rebounding Energy Companies: Genie Energy Ltd (GNE)Genie Energy Ltd (GNE) — through its subsidiaries — resells electricity and natural gas to residential and small business customers operating in the Mid-Atlantic and Midwestern United States. It also provides brokerage and advisory services to commercial customers.

The price of GNE seems to have reached a bottom at $6.32, showing a sign of reversal, as it has broken upward after a period of uncertainty or consolidation. A “Bottom Triangle” shows two converging trendlines as prices reach lower highs and higher lows.

Volume diminished as the price swung back and forth within an increasingly narrow range, reflecting uncertainty in the market direction.

Then, before the triangle reached its apex, price broke above the upper trendline with a noticeable increase in volume, confirming the bullish pattern as a reversal of the prior downtrend.

Profit Scanner’s intermediate-term target price range is found between $9.10 and $9.50 per share. If the conservative end of the target range is realized, investors would see gains of up to 24.7%.

Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.


Article printed from InvestorPlace Media, https://investorplace.com/2016/06/energy-stocks-epe-jpep-gne/.

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