Long

Long to topside of channel

Updated

The only question I have, is if were going to break above or below the channel when the time comes.

There are a couple of charts I want to post in the updates after this to explain why I think we break to the upside.

Note

The first is CVX vs XLE.

We are currently at support. If it holds, then that suggests we out preform XLE.

This does not mean we go up, though. We could just go down less.

Note

This is CVX versus the S&P500.

I am suggesting were at the part of the cycle where CVX outperforms the S&P.

I marked the similar points in history with Colored dots.

The support line i have drawn is the support of the "PULL BACK" after breaking below and then breaking above.

Obviously the optimal time to buy was while below... but a retest of support is also a good entry in my opinion.

Note

Here we have USOIL vs S&P500.

Sure we can go sideways for awhile, but this looks like bottom of the range to me.

Ready for another cycle/markup.

Unless we go sideways forever??

Yeah I doubt it.

Expanding up soon I think.

Note

Here is USOIL vs Gross Domestic Product.

Looks like its bottomed, in accumulation, like the rest of the charts...

When markup??

Note

And finnaly, We were just EXTREMELY oversold on the RSI 4 hour, also oversold on the daily.

We have turned up on the MACD averages, with first signs of positive momentum.

The daily chart shows a bullish engulfing candle yesterday, without an invalidation today.

Expecting follow through next week, maybe even gap up monday.

Note

I think that it is interesting this idea, or any oil related idea gets zero attention, where my other posts get a lot of attention.

Huge lack of attention on the sector, at such an opportune moment.

The VERY least i can take away from the charts i posted is that, CVX and oil will not underperform the s&p500, and will AT LEAST keep pace.

I dunno guys, seems like a no brainer.

MikeMM

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