Wednesday, 13 December 2017

1pm update - oil and energy

US equities remain a little choppy, ahead of the fed. Meanwhile, WTIC is currently -0.6% in the $56s. The energy sector ETF of XLE is currently net higher for the week by +0.3% in the $69.50s.

USO daily

XLE weekly


*EIA report: net draw of -5.1 million barrels, which is very supportive of the bullish case into 2018.

WTIC/USO: recent price action is bullish, having recently seen the $59s. Next technical 'natural target' are the 61/62s, rather than just the psy' $60 threshold. One of the grander issues for 2018 is whether oil will broadly climb all the way into the 70/75 zone. I'm leaning on that scenario.

XLE: a key low in August, that looks very secure for mid term. The Dec'2016 looks set to be taken out in the spring. I favour PSX, APC, and LNG. More speculative: MRO, RIG, and CHK.

Equities: sp'60min

An hourly bearish MACD cross. A daily close around the lower bollinger, soon near 2650, is very possible.

notable energy stock: MRO, daily

First, note today's bullish MACD cross, along with a break above s/t declining trend. Soft target are the mid $16s. Any monthly close >19 will offer far higher levels to 29/30.

Options activity: >32000 of the Dec'29th $15.50s. Its a bullish s/t trade.