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3 Bullish Charts in Energy Stocks

Take a look at these chart patterns for some bullish ideas in energy


The Trending123 Pattern Scan has uncovered two bullish technical setups in these natural gas and oil stocks — two that are very well-known, and the other a penny stock that could see some intermediate-term upside.

Head and Shoulders Bottom

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(TSO) has shown a head and shoulders bottom over the past 29 days. This pattern is created by three successive declines in the price following a significant downtrend. The lowest low (head) is in the middle, flanked by two higher lows (shoulders) at roughly the same level. Volume is highest as the price makes the first two declines, 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.

The price seems to have reached the end of a period of “accumulation” at the bottom of a major downtrend; the break up through resistance signals a reversal to a new uptrend.

Price Target: $61.75 – $63.00

Stop: $50.42

Upside Breakout

8-1-13-hesHess Corp. (HES) has developed an upside breakout over the past 87 days. An upside breakout represents a trading range in which prices move sideways between two parallel horizontal lines. It’s often a pause or congestion area within an existing trend though sometimes the breakout results in a reversal to the prior trend. Either way, an upside breakout through the upper resistance line signals an end to the consolidation period and the start of an uptrend.

This is a reversal pattern, so once the price breaks upward out of a trading range, it suggests we’re entering a new uptrend for HES.

Price Target: $84.00 – $86.00

Stop: $67.38

Bottom Triangle

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TransAtlantic Petroleum
(TAT) seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation over the past 26 days.

A bottom triangle has developed, showing two converging trendlines as prices reach lower highs and higher lows. Volume should diminish as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks above the upper trendline with a noticeable increase in volume, confirming this bullish pattern as a reversal of the prior downtrend.

Price Target: $0.85 – $0.87

Stop: $0.63

InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the OpenParabolic Options and Trending123.  Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership.

 For more information on which service is for you click here.

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