Can tropical storm Nate send Exxon (XOM) above 84.51?
Tropical storm Nate is set to hit the Gulf coast over this weekend, affecting natural gas and oil production. Here is my little break down of what this could mean for the market and why Exxon may break a key price of 84.51, which I used the above renko chart to identify.
The Gulf accounts for 17 percent of the US crude oil production and 5 percent of its natural gas production. The area also accounts for 51 percent of the natural gas processing plant capacity. A strike to this area could mean limited supply and higher prices.
Hurricane Harvey sent gas prices up 14 cents for a 12 day period. The vicious storm shut down 25 percent of oil and gas production, which made up 5 percent of the nation's output.
In addition to oil and natural gas prices rising, we should expect a short-term spike in the auto and home building materials industries, possibly a week or 2 after.
Companies to watch include, GM, Ford, and Louisiana-Pacific. Also watch Exxon Mobile, which could be fueled into a new high. Just be careful, XOM is trending down. Always use proper stops and position sizing.
Happy Trading!
The Gulf accounts for 17 percent of the US crude oil production and 5 percent of its natural gas production. The area also accounts for 51 percent of the natural gas processing plant capacity. A strike to this area could mean limited supply and higher prices.
Hurricane Harvey sent gas prices up 14 cents for a 12 day period. The vicious storm shut down 25 percent of oil and gas production, which made up 5 percent of the nation's output.
In addition to oil and natural gas prices rising, we should expect a short-term spike in the auto and home building materials industries, possibly a week or 2 after.
Companies to watch include, GM, Ford, and Louisiana-Pacific. Also watch Exxon Mobile, which could be fueled into a new high. Just be careful, XOM is trending down. Always use proper stops and position sizing.
Happy Trading!
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