OPEC agrees to limit oil production. Adding to energy stocks.
Updated
Oil jumped 4% today on the news. The various charts check out, too.
Oil is breaking out of a wedge and may continue towards its large inverse H&S target.
I'm adding to the three companies I already own.
Oil is breaking out of a wedge and may continue towards its large inverse H&S target.
I'm adding to the three companies I already own.
Note
The thing with news based events is, you never know who is pulling the strings behind the news. That's why you stick to chart action and trading discipline. You always define your risk and never (ok, rarely) hope & pray.It a game where for every buyer there is a seller. You look for signs of accumulation and you try to trade on the side of the big boys who are many times more patient and prescient than you.
Trade closed manually
Sold CHK, AREX, and 75% of OAS. I didn't sell at the peak so only marginal gains. CHK and AREX haven't really run, maybe due to weak fundamentals.Overall:
- Bearish rising wedge on XLE
- Questionable fundamental outlook on oil remains
- Much better opportunity in precious metals
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