[odlareg]

The energy sector is coming back to life again recently, after the monster multi 100%+ short covering rallies at the beginning of the year for a lot of stocks in the sector, ending their multi year Stage 4 declines. A large number then began to form constructive Stage 1 ranges, and we are now beginning to see a number of Stage 2A breakouts, and on heavy volume in some cases. The Exploration & Production subsector has seen a number of these heavy volume breakouts of which I've been highlighting, and there could be more, as money seems to be flowing into energy imo. So is definitely an area to watch if you are using Weinstein's "Forest for the Trees" rules imo. As it is a strengthening sector with multiple stocks in Stages 1 and early in Stage 2.

Anyway, I'll let you do your own research to see if you agree, but here's a few more for the watchlist from the Exploration & Production subsector - MPET (Stage 2A), PXD (Early Stage 2 consolidation), PWE (Stage 1B - Potential for a Stage 2A breakout attempt)

The PXD has nearly reached the top of it's historical range (back to 1993) with this break. So to risky imo. The initial break in PXD to wards 2A was not noticeable in terms of volume. So no good candidate either, imo. There are always better candidates. Sorry, feel i am only being critical.

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I've also seen a lot of interesting patterns on Oil&Gas' stocks. I even was going to try some entry, but I was unconfortable with the fact that the Oil&Gas Producers and Oil Equipment/Services sectors still are not in phase 2. My sectors momentum classification also is not good, as the RS on those sectors. The recent correction of Brent confirmed my feeling, as I was seing a lot of stocks go down again.

Now, a possible approach could be to try an entry on a very limited number of stocks, going on those who have the best RS.

Knot Offshore Partners and Transmontaigne are probably the ones with the best shape and RS that I have in my screener (for now). It's worth noting that the stocks didn't experience a such strong bear trend as other stocks, and also especially that it didn't suffer to much from the recent Brent correction.

There is definitly something going on in this sector. We need to find the early leader breakouts.