{"id":12112,"date":"2023-08-16T01:04:46","date_gmt":"2023-08-16T01:04:46","guid":{"rendered":"https:\/\/isafespend.com\/investing\/get-ready-for-higher-oil-prices-and-an-energy-stock-rally\/"},"modified":"2023-08-16T01:04:47","modified_gmt":"2023-08-16T01:04:47","slug":"get-ready-for-higher-oil-prices-and-an-energy-stock-rally","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=12112","title":{"rendered":"Get Ready for Higher Oil Prices\u2014and an Energy Stock Rally"},"content":{"rendered":"
\n

Oil looks set to break out higher.<\/p>\n

The $70 area was a formidable barrier for Brent Crude oil for two years\u2014until it was overcome decisively in September 2021, as you can see from the chart below. After hurdling $70\/$72 resistance, that price zone became support and propelled oil to its $139 high in March 2022.\u00a0<\/p>\n

\n
\n

<\/p>\n

\n
<\/div>
\n <\/figcaption><\/figure>\n<\/p><\/div>\n

From that high, oil declined to $70\u2014its former resistance. In my July 12 column, I wrote that \u201cOil Is Bottoming Out\u2014Finally.\u201d After having tested the $70 area three times and making higher lows, Brent Crude decisively\u00a0hurdled its downtrend three weeks ago. Adding to the bullish action, it also climbed decisively above its 11-week moving average.<\/p>\n

I wrote that a weekly close above $80 would turn the trend bullish. Hurdling $89 on a weekly close would send Brent out of its year-to-date trading range and generate upside projections to $100-$110.<\/p>\n

The chart below illustrates why I recommended some energy stocks to my clients. The
\n S&P 500 Equal Weight Energy
\n index is on the verge of breaking out of a five-year base against the
\n S&P 500 Equal Weight
\n index. An upside breakout would project a multiyear outperformance of energy stocks vs. the broader market.\u00a0<\/p>\n

\n

<\/p>\n

\n
\n \"\"\n <\/div>
\n <\/figcaption><\/figure>\n<\/p><\/div>\n

A weekly close for
\n Brent Crude
\n above $89 would project an advance to the $100-$110 area. With their bullish price action (pricewise and on a relative basis), energy stocks are anticipating that oil prices will be breaking out of their year-to-date price range in the coming weeks.<\/p>\n

Andrew Addison is the author of\u00a0The Institutional View, a research service that focuses on technical analysis.<\/em>\u00a0<\/p>\n

Write to editors@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Oil looks set to break out higher. The $70 area was a formidable barrier for Brent Crude oil for two years\u2014until it was overcome decisively in September 2021, as you can see from the chart below. After hurdling $70\/$72 resistance, that price zone became support and propelled oil to its $139 high in March 2022.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":12113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":{"0":"post-12112","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"\nGet Ready for Higher Oil Prices\u2014and an Energy Stock Rally | iSafeSpend<\/title>\n<meta name=\"description\" content=\"Oil looks set to break out higher. 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