The beat goes on for oil’s recovery bid. Another day, another dollar reclaimed. Crude is tagging $50 this morning as its maturing uptrend continues its stretch for the stars.
After taking a well-deserved nap, many energy stocks finally awoke during Wednesday’s trading session.
Since I’m a man of order we’ll tackle these energy stocks from most attractive to least.
Whiting Petroleum Corp (WLL)
First up we have WLL, which as the accompanying chart will attest wins the beauty contest hands down. Yesterday’s high-volume surge pole vaulted WLL stock above near-term resistance and the 200-day moving average for the first time in ages.
Liquidity in WLL options is meh, so go with a straight stock purchase if you’re inclined to play. Use a break of Tuesday’s low ($10.85) to exit stage left with dignity in hand.
Weatherford International Plc (WFT)
Next up is WFT which beat out CHK by a whisker. The $5 energy stock soared a ridiculous 8% yesterday on solid volume. Buyers wanted in and they weren’t afraid to pay up for their piece of the action.
Sadly the ascent, as glorious as it was, failed to turn the trend of WFT stock. For that, we need a breach of the $6 zone.
If you think the nascent bounce in Weatherford can go the distance, then scoop up shares on a break of resistance.
Chesapeake Energy Corporation (CHK)
Finally, we have Chesapeake Energy.
Let’s keep this one simple. The sell-off in May dropped more than it should have, breaching all major moving averages, but the $3.50 support zone is holding firm.
Provided CHK stock can remain above that, bulls have a green light to try their hand at bottom fishing. If you’re jumping in here, then consider using that level as your stop loss.
At the time of this writing Tyler Craig had no positions on any of the aforementioned securities.
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