Oil and Gas Stock Daytrading Scans for Thursday, August 6
Aug 5, 2015 Oil Stock Scans
Another down day on Wednesday, seems like the downward spiral has no end in sight. Oil touching new lows with the dollar gaining strength by the day, not a good combination for energy stocks
Clean Energy Fuels Corp. (CLNE) – Once people start realizing that the our domestic natural gas, combined with the toll and processing costs of getting it transported to foreign countries, isn’t going to be wanted or needed abroad, the only use for this stuff other than power plants and homes will be automobiles and trucks here domestically. CLNE is in the sweet spot to take advantage of that need. It is trying to base here above 5.50. Long any dip and use 5.35 as the stop for a rebound back toward 7.00.
California Resources Corp (CRC) – It has touched 4.00 several times over the last couple weeks and seems to be putting in a bottom there. Look for an entry close to 4 and put a stop just outside the noise at 3.90 and look for a move back to 5.00.
Frank’s International (FI) – Frank’s got hit hard on earnings Wednesday, but that action led to a beautiful bottoming candle on heavy volume. Look for a weak open for an entry and set the stop at the low of the candle wick from Wednesday. Could close Wednesday’s opening gap.
HollyFrontier (HFC) – HollyFrontier has the most momentum of any of the refiners and with the oil price still sinking, the momentum for the refiners should continue. Enter on any weak opening and look for a push to 50.
Suncor Energy (SU) – The Canadian energy companies continue to outperform the companies based in the United States. IMO, CNQ and CVE all trending nicely upward. SU is the best of the bunch and could be ready for a breakout toward 30. Any weak open could be a decent entry with a stop at the week’s low of 27.30.
As far as which stocks should be played short, just about all of them. The way I have been playing short is simply to short the XLE and play it safe that way. If you get cute trying to select a single stock to short which you think will outperform to the downside, it inevitably happens that you pick the wrong stock.
Good luck Thursday.