Since Russia invaded Ukraine, the Oil & Gas sector has been on a wild ride.
It’s been incredibly hot and also ice cold, depending on when you happened to peek at it.
But right now, it’s hot once again.
Further, ticker NOV (which makes and sells oil and gas equipment) has formed a tight consolidation in the past month, and breakout traders love that more than sliced bread.
Here’s a chart:
A break above $20.98 could lead to a quick move up to the $25 level.
With many stocks, we’re better served letting them run as far as possible.
With Oil & Gas, many times it’s better to have a profit target in mind.
Emotions run high in this cohort, and reversals are plentiful.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
