Energy Stock Scans for Monday, July 6
Jul 5, 2015 Oil Stock Scans
I’m looking for most of the energy sector stocks to be weak on Monday, so the best idea is to be looking short for quick scalp daytrades. The bigger money trades though would likely develop if the market surprised to the upside with a nice bounce. Try to stay with the trend for the short scalps, but be on the lookout for some swing ideas on the long side if the sector turns up. Here are my best trade ideas for Monday:
Cameron International (CAM) CAM has decent support around 50, as it has tested that level many times since the late April gap up. I’m looking for it to test 50, maybe dropping as low as 49 to fill the gap and then get a nice bounce. If it can base with a fixed risk setup, it will be one of my choices if energy stocks start moving up.
EOG Resources (EOG) If energy stocks start to run this week, EOG is my favorite choice for a ride on the long side. It has held that 85 level several times since the first of the year and had a nice tight candle on Thursday. Play this one off of 85 as the risk and see if it can give a 3:1 return. I’d also give this a play off of any washout on the open Monday. Could possibly even turn this into a swing trade if it shows good strength since the stop is fairly concrete.
Flotek (FTK) Looking for FTK to have a weak open and then a red to green move to take out the 13 level. If it can break out, it could be a quick 50 cent gainer, maybe more. There has been good volume over the last 7 trading days, so keep an eye on it and see if that volume is there Monday. There is a solid worst case scenario risk point at 12.25, but I’d probably base the risk off of how the stock handles the 12.50 level, which should keep the R:R at 3:1.
Ion Geophysical (IO) IO has been on a nice run the last two days and the play here is for a weak open and then a red to green move toward 1.50. Quick scalp trade, nothing more. It must show some volume early to be worth a play.
PDC Energy Inc (PDCE) This is probably my favorite short for Monday if the energy market rolls over. The thing to notice about this chart is 1) a big round number mark at 50 and 2) the 200 day moving average at 48. I think those two magnets will draw this stock down for a test of at least 50, but probably a test of the 200 ma at 48. The stock closed at 51.04, so there is some downside to work with. The 8 and 21 ma’s also just turned down through the 50 ma. The ideal trade setup would be a little pop to get short around 51.50, possibly playing the risk off 52.
Phillips 66 (PSX) Looking for a weak open, red to green and a test of the 82 level for a breakout. Refiners have shown the ability lately to run nicely even if the rest of the energy sector is red.
Contango Oil and Gas (MCF) The last scan of interest is probably the most risky. MCF is a light volume stock that seems to be basing out here around 12. Another few days of declining volume and low volatility and this one could break to the upside. As the overall energy market has moved down over the last two weeks, MCF has trended sideways, which is good relative strength. Big risk, big reward on this one, but if you can get a good fixed risk setup with the risk somewhere around 11.75-12, then it could be a high R:R trade.
Tags: Trade Scans