Back in the 90s, when I began trading some 25 years ago, everybody knew it was all about the oil. Books written by famous investors said things like, “It’s all about the oil, stupid!”
Uptrending Oil
The price of oil was already on the rise before the Russia Ukraine war. The Biden Administration made it a priority to cut the Keystone pipeline, which reduced the domestic flow of oil. Hundreds of smaller channels were shut down by the Biden Administration as the supply of oil was reduced. At the same time, the oil demand increased on the reopening of small businesses after lockdowns.
The Price of Oil
When the Russia Ukraine war started last week, oil prices increased even higher.
The rise in oil prices is a HUGE negative for the US economy. Americans were already squeezed from rising prices at the pump AND on their utility bills BEFORE fighting started between Russia and Ukraine. The most recent surge in the price of oil should prompt the Biden Administration to open the nation’s strategic oil reserves immediately. A lot more pressure needs to be put on OPEC to increase oil production immediately. Time is of the essence as consumers were already reducing their consumption due to rising inflation and interest rates. Brent oil is currently trading at $118, and WTIC is at $115 as of March 6, 2022. Unless something isn’t done quickly to reduce the price of oil back below $90 a barrel, the US economy is headed rapidly towards another Recession. No wonder institutional investors continue to sell-the-rip.
Three Popular Energy Stocks
The upward spike in the price of oil is causing lower liquidity energy stocks to soar. Below are three popular energy stocks that are flying higher.
📈 IMPP Stock Technical Analysis
The long-term trend is still neutral, but the short-term trend is positive, so the stock is getting more and more appreciated by traders and investors. Volume is considerably higher in the last couple of days, which you like to see during a strong move up. IMPP is currently trading in the middle of its 52-week range. This is in line with the S&P500 Index, which is also trading in the middle of its range. Prices have been rising strongly lately; it may be a good idea to wait for a consolidation or pullback before considering an entry.
IMPP has an average technical rating, and it also does not offer a high-quality setup at the moment. IMPP stock has a Setup Rating of 1 out of 10. Prices have been extended to the upside lately. For a nice entry, it is better to wait for consolidation. Click here to sign up for email alerts on when IMPP stock consolidates and has a Setup Rating of 8 or higher.
📈 CEI Stock Technical Analysis
The long-term trend is still negative, but the short-term trend is neutral. It is advised to wait a little longer to see how this turns out. Volume is considerably higher in the last couple of days, which is what you like to see during a strong move up.
There is a support zone ranging from 0.76 to 0.77. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also support at 0.46 from a trend line in the daily time frame.
The technical rating of CEI is bad and it also does not present a quality setup at the moment. CEI stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when CEI stock consolidates and has a Setup Rating of 8 or higher.
📈 OXY Stock Technical Analysis
The long and short term trends are both positive. OXY is currently making a new 52 week high. This is a strong signal, certainly because the S&P500 Index is not trading near new highs. Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.
There is support at 40.43 from a trend line in the daily time frame. There is also support at 31.98 from a trend line in the weekly time frame. Finally, there is a support zone ranging from 30.03 to 30.50. This zone is formed by a combination of multiple trend lines in multiple time frames.
Although OXY has an excellent technical rating, it does not offer a high quality setup at the moment. OXY stock has a Setup Rating of 1 out of 10. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when OXY stock consolidates and has a Setup Rating of 8 or higher.
It Really Is All About the Oil
The future of the US economy depends on keeping the price of oil low. Lower-priced oil is what drives US involvement in foreign wars.
📺 Oil prices pose biggest risk to the market right now
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