The energy and oil-related stocks continue a mad dash higher as crude oil and other energy components provide a healthy fundamental tailwind.
The sector, which had been one of the most hated in 2017, is now starting to look more like the tradable group of stocks that investors fell in love with before the breakdown in 2014.
Today’s three big stock charts look at three leading companies in the oil & gas sector (XOI).
Anadarko Petroleum Corporation (NYSE:APC), Noble Energy, Inc. (NYSE:NBL) and Exxon Mobil Corporation (NYSE:XOM) are three of the stocks breaking into new intermediate-term bullish trends that are more than worth a look right now.
Big Stock Charts: Anadarko Petroleum Corporation (APC)
Shares of Anadarko are on the move today as the company is breaking into a volatility rally that is opening-up more upside potential. The shares were downgraded by Citigroup last week, which is awesome as it suggests that the stock is not crowded with bulls as it makes its move higher. This suggests a strong outlook for the Oil company.
- Anadarko stock is surging more than 5% as oil prices lead the energy sector higher today. This stock had significant chart resistance at $56 from activity posted in April and May of 2017. The break above this price is drawing technical buyers into the stock.
- December 29 saw a Golden Cross formation for the stock. The last similar occurrence was in July 2016 ahead of a run that took the stock from $50 to $75.
- Contribution to the volatile move today is the fact that APC shares are breaking above their 20-month average. The stock will be considered in a long-term a bull market, which will bring more analyst upgrades and technical buyers into the fold. We expect this trajectory to lead to a $70 price target.
Big Stock Charts: Noble Energy, Inc. (NBL)
Another stock making a big move today, Noble Energy is breaking through after consolidating around $31.50. The move fortified the long-term outlook for the stock for the bulls and forecasts higher prices over the next 6-12 months.
- Noble Energy stock is moving into another intermediate-term bullish trend as its 50-day moving average has transitioned into another bullish trend higher. Out technical models forecast a price target of $37 over the intermediate-term outlook based on this signal.
- Noble Energy shares are also in the process of breaking above their 20-month moving average. A break above this trendline would put the stock back in a long-term bull market trend, attracting more long-term bulls.
- A Golden Cross is impending as the 50-day is approaching the cross above the 200-day. The last Golden Cross happened in May 2016, resulting in a 12% wide trading range environment which allowed technical traders to reap large gains.
Big Stock Charts: Exxon Mobil Corporation (XOM)
Global oil giant Exxon-Mobile has been in a long-term bull market since October, leading the oil sector higher. The stock is now making volatile stair steps higher, though this is likely to even out over the next few weeks as earnings approach on Feb. 2. The volatility suggests that traders are becoming more active in the stock, a bullish catalyst that will help propel the stock higher.
- Shares of XOM turned bullish in October after they crossed above their 20-month moving average and saw a Golden Cross pattern form when the 50-day trendline crossed above the 200-day.
- The stock remains an intermediate-term bull as the 50-day moving average is trending higher. This tells us that the stock’s 3-6 month trajectory is likely to be higher with a target of $100.
- Chart resistance has been in place at $87 for the last week. Today’s activity is challenging this price and a move to close above $87 will increase buying pressure for the next 3-5 days according to our model as another volatility rally ignites.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.