With the halving of the price of oil last year, energy stocks and ETFs have also felt the pain. The S&P 500 energy sector — as represented by the Energy Select Sector SPDR (ETF) (XLE) — has lost about 30% of its value since late June 2014.
Short-term pullbacks provide opportunity to enter trade in the longer-term trend direction. Stock of Energy company EOG Resource Inc (EOG, Financial) broke a double bottom on January 20.
Prior to pattern of weekly Bullish formation on January 16 it was in the downtrend. EOG has pulled back as is consolidating near the January 2 support region of $90. Based on the short-term long trend, this could be a good point to buy shares of the next wave high. If there’s upward price movement early in this week, buy between $91 and $91.50 with the initial price of $95.
Disclosure: I have no relationship with this company, and I don't get paid anything from this company for writting this, and I have no plans to invest in this stock for next 72 hours.
