Guy Adami (Contributor) 00:00.070
let's go off the charts with katie stockton katie what are we looking at i'm excited
Katie Stockton (Founder and Managing Partner) 00:04.670
about crude oil for the first time we have on the demark indicators a counter trend signal and that means that we should see up to nine weeks of stabilization and you could imagine over the course of nine weeks that we're likely to see crude oil this is wti on the the generic
Katie Stockton (Founder and Managing Partner) 00:21.590
futures lift above its fifty day moving average which is roughly fifty nine dollars per barrel it wouldn't take much it could happen in a day it could happen in two weeks but when it does happen we feel that that acts as a positive technical catalyst generates additional
Katie Stockton (Founder and Managing Partner) 00:36.190
momentum behind the stocks behind crude oil itself and solidifies what looks like the early stages of a potential turn around there is good support for crude oil it's right around fifty five dollars per barrel and so as long as that support level is intact and we have this
Katie Stockton (Founder and Managing Partner) 00:52.030
counter trend signal active which it still is i think there's hope that we see a little bit of a breakout the objective from that would be about sixty eight dollars per barrel over the intermediate term and of course there are companies that would stand to benefit from such a
Katie Stockton (Founder and Managing Partner) 01:07.630
breakout we've already seen some rotation to the benefit of the energy sector the relative performance hasn't been great for the sector overall but we have seen some of the individual stocks gain intermediate term upside momentum at a time when technology and other sectors are
Katie Stockton (Founder and Managing Partner) 01:22.790
losing upside momentum so that's intriguing to us we know that the energy sector as a whole can act differently from the broader market so especially for folks that think maybe the broader market is losing some steam here energy might be a good option for them with this
Katie Stockton (Founder and Managing Partner) 01:37.910
potential catalyst so i'd i'd highlight SLB is one chart to look at we have a long term turn around that appears to be underway for that chart so SLB as a base breakout following a long term downtrend and i think that acts as a nice catalyst there's pullbacks underway right now
Katie Stockton (Founder and Managing Partner) 01:55.670
in this sector so i think within the next couple of weeks we'll have a nice entry point that brings support levels in line with resistance levels already having been cleared target resources TRGP would be another one to take a look at this is a secular uptrend still but within
Katie Stockton (Founder and Managing Partner) 02:11.750
that context we saw a cyclical down move basing phase and a breakout there as well now that resistance for targets should become support going forward we also like you know halliburton exxon mobil there's a lot of names that to us are poised to benefit from that kind of breakout