We’re watching crude oil carve out a base, and it’s not subtle. After testing key levels around $68 multiple times and bouncing with conviction, the setup is finally turning bullish for real.
To be clear, I’m not seeing explosive upside yet, but the technicals suggest a slow and steady climb, with a move toward $78 looking more and more likely.
One of the loudest tells here are energy stocks, picking up ahead of crude itself.
The margins for producers remain solid even at these lower prices, and many names in the space offer attractive dividends – some over 4%. If crude grinds higher, the upside in names like ExxonMobil (XOM), Chevron (CVX), and Halliburton (HAL) could be 10% to 20% in the next month or two.
In this video I’m going to plead the technical cases, show you the channels in black and white, and clue you in on the risk-reward landscape across the sector.
Let’s get into the charts..
