After the worst losing streak since 2019, oil prices finally rebounded Monday. WTI Crude jumped 6% and Brent jumped nearly 6% as well. The initial pullback was due to fears over the delta variant, however, with zero new cases in China, investors’ COVID fears are starting to recede.
Energy stocks followed in lock step with this rally. S&P 500 energy stocks gained 3% and top energy ETFs; SPDR Oil & Gas Exploration & Production ETF as well as VanEck Vectors Oil Services ETF were up 4%.
The rally spread to some oversold Energy penny stocks as well.
Allied Energy Corporation (OTCMKTS:AGYP) was up 4%.
Looking at the technical indicators, AGYP’s move could continue. Several MACD time frames are pointing to “BUY”:
- 20-100
- 20-200
- 50-100
- 50-150
- 50-200
- 100-200
The stock is also a “BUY” looking at the 200 day MA which is a strong signal for long term investors. This could lead to accumulation for the stock that is well off its 83 cent high.
TETRA Technologies Inc. (NYSE:TTI) climbed 12% yesterday, and the move continued into the post market. Several indicators are pointing to a continuation Tuesday. The MACD time frames that are bullish include:
- 20-200
- 50-100
- 50-150
- 50-200
- 100-200
The 200 day MA is also bullish for TTI.
Contango Oil & Gas Company (NYSE:MCF) rose nearly 6%. However, unlike the aforementioned stocks, there are not many technical indicators pointing to a continuation, which means this may have just been a pop in conjunction with the broader market. The only bullish indicators currently are the 50-200 and 100-200 day MACD oscillators.
Kosmos Energy Ltd. (NYSE:KOS) was up 9% in Monday’s trading, but much like MCF, the technical indicators are pointing in the wrong direction for the stock. The 50-200 and 100-200 day MACD oscillators are the only bullish indicators in KOS’s favor. So be careful.
Goldman Sachs commented on the energy sector yesterday: “While liquidity will likely remain low and the trend is not our friend right now, we believe the micro — steadily tightening commodity fundamentals — will trump these macro trends as we move toward autumn, pushing many markets like oil and base metals to new highs for this cycle.”
Despite a rough summer, energy is still the 4th best performing sector on the markets only behind: financials, real estate and communication.
