Oil and Gas Stock Daytrading Setups for Tuesday, August 11
Aug 10, 2015 Oil Stock Scans
Energy finally got a bid today and just about every stock in the sector was green. PBF and IMO off of yesterday’s scan were big winners and very easy to catch today.
I have no idea if this momentum will carry over to Tuesday, but the one fringe clue that tells me that it will is gold. Gold took out 1100 like it was nothing, and just about every commodity stock followed suit. The commodity advance wasn’t just an oil move.
While just about every pattern in the energy sector put in a solid green candle off the bottom, not all those patterns are tradable. A good trade has a fixed risk and defined stop which produces a reward larger than that stop. The setups below meet these rules and offer low risk, high reward opportunities, without being knife-catch type trades.
Tetra Technologies Inc. (TTI) – TTI picked the right day to come out with great earnings, as the stock was up 32%. I think someone knew this was coming, because Thursday was also a big volume upward spike. Daytraders will be all over this one tomorrow, especially given the big day in energy overall. Look for a pullback and try to get long using $6.00 as a guide. Be nimble here, it could be very volatile.
Cameron International (CAM) – Cameron climbed back over the 200 day moving average and is probably the strongest stock in the oil services sector. The 200 comes in as support at 50.21, although I don’t think the stock pulls back that far. The play here is to look for some weak open profit taking and grab a good entry playing the stop off the low of the first 30 minutes. There’s a real chance it gaps open and never looks back, so be quick.
Callon Petroleum (CPE) – Callon has been on a very strong run and the play here is simply for the momentum to continue. Looking for an entry around 8.00 on some profit taking and a run up toward 9.00. The 7.75-8.00 range should be good support for the stop.
Suncor Energy (SU) – SU, CNQ, IMO and CVE are going to stay on the daily scan until they stop trending up. All three Canadian energy companies have been trending up strong and I don’t see any reason that should change Tuesday. The 8 day moving average should be good support around 28.31. I’m looking for an entry around 28.50 in Suncor for a tight 25 cent stop and possibly a run toward $30.00.
EQT Corp. (EQT) – The natural gas stocks are due for a big bounce and EQT is the quality pick in this sector. The 21 day moving average provides good support at 75.72 for an entry if the first 30 minutes pulls back from Monday’s 76.69 close. The 8 day moving average comes in at 75.64 for an added bit of support. Look for an entry within 50 cents of the ma’s and see if the stock can make new highs on a bounce.
PBF Energy (PBF) – I had this refiner on last night’s scan and it was a big winner. I’ll be playing it again Tuesday for follow through momentum. PSX, TSO, HFC and VLO all make good momentum plays in the refining sector.
Helmerich and Payne (HP) – The onshore drillers have been strong for the last two weeks and HP is the quality stock in this area. This stock is another pure momentum play, but the thing to notice here is the danger that might develop for several of the energy stocks. There is a really good chance that the move from 55 to 63 is a bearish flag. Draw a trendline from the low of 55 under the lows through today and be aware that if the stock breaks that trendline, it could sink quickly. Honor stops on these stocks. Even though they look strong, as we have seen over the last year, they can weaken quickly.
Tags: Trade Scans