• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Energy Heats Up
Stock

Energy Heats Up

by March 22, 2024
by March 22, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Crude Oil struck an intraday low on December 13th of 2023, the same day as Fed Chair Powell’s notable press conference. This concluded a decline from approximately $95 (at the end of the 3rd quarter) to under $68 (near the end of the 4th quarter). After that Fed meeting and press conference the market priced in as many as five ¼ point Fed Funds interest rate cuts in 2024-25. This optimism has waned as crude oil began building a range-bound structure that appears to be an Accumulation base. Now this Accumulation appears nearly complete.

Crude Oil, Continuous Contract. PnF Swing Trade Case Study. 1 – Box Method

Wall Street’s enthusiasm for future interest rate cuts is deteriorating with recent higher oil prices. Rising energy prices are a leading cause for inflation as measured by CPI, PPI, PCE and others.

Producer Prices (PPI) have recently been reported and were surprisingly double the forecast of economist’s projections. Inflation is heating up again. The FOMC has headwinds that will temper their ability to dramatically reduce interest rates this year. 

A swing trading Point and Figure study of the Accumulation provides an estimate of the upside potential for crude oil. This is a conservative PnF count which could be extended. If the objectives are fulfilled larger counts can be considered. 

VanEck Oil Services Group ETF (OIH). Three PnF Swing Counts

There have been several swing trading opportunities in the oil services industry group. Here are three PnF counts. Two of them came within one box of fulfilling the minimum projections. The most recent count is still unfinished. Is it possible a larger ‘Campaign Count’ using 3-box reversal method is developing? 

Chart Notes:

Range-Bound since December.Local Climax from $315 to $335 which is just above the Resistance zone.Volatility remains elevated in the trading range. Less volatility on pullbacks would suggest absorption.Relative Strength basing after downtrend. Attributes of leadership emerging.Accumulation range could grow larger.

The vertical chart has the recent Distribution and Accumulation structures. They have classic Wyckoff attributes. The Sign of Strength (SoS) advance above the resistance line of the Accumulation may have the character of a local Buying Climax. This would be a place for OIH to pause before continuing higher. A correction back into the Accumulation trading range is very possible. The less correction of price the better. Any pullback would make the PnF count larger. The Relative Strength peaked in September of last year and has been in a well-defined downtrend since. This trend has been reversed upward and bodes well for price strength in the future.

Take time to evaluate the other industry groups in the Energy Sector as they have a family resemblance to the Oil Services Group. 

Power Charting Final Episode

The 228th and final episode of Power Charting TV has been posted. To the many of you who have watched these videos, asked great questions and made suggestions… a huge Thank You! I have always visualized us being in the classroom setting together discussing all-things Wyckoff. The thrust and goal of these sessions has been to convey the concepts, techniques and nuances of the Wyckoff Method. As you all know, but please allow me to repeat, Wyckoff is a complete Method for trading markets. The goal of all Wyckoffians is to be on the Path to Trading Mastery. So many of you have shared your work and your progress is impressive. My plan is to post these written blogs on a more frequent basis, so stay tuned. Please sign up for email notification if you have not done so already.

There are excellent resources to support you on your mastery path. Join Roman and me for the weekly Wyckoff Market Discussion (Wednesday’s at 3pm PT). Below is a link for a discount to WMD for my readers. Check out additional resources at Wyckoff Analytics (click this link to learn more). Consider taking Roman’s ‘Wyckoff Trading Courses’. 

All the Best,

Bruce

@rdwyckoff

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. 

Join Roman Bogomazov and Me for the Weekly Wyckoff Market Discussions.

Special WMD Discount Coupon for Power Charting watchers. Be sure to add the coupon code (powercharting) at checkout:

https://www.wyckoffanalytics.com/wyckoff-market-discussion/

Power Charting Video

Power Charting Video: Gold Shines (March 8, 2024)

You Might Also Like
  • DEFENSE TRIES TO HELP EQUITIES MOVE OFF LOWS
  • EQUITIES HIT ALL TIME HIGHS AS TECHNOLOGY JOINS LEADERSHIP GROUPS
  • Stock Market Weekly Update: 3 Valuable Points You Need To Know About the Selloff
  • Mixed Signals on the Charts? RRG Reveals Market Rotation Tension
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Post-Fed Rally Ignites Flurry of New Highs
next post
The Stock Market This Week: What This Surging Bull Means

You may also like

NVDA Stock Split Launches S&P 500 Higher

June 10, 2024

Everyone Talks About Leaving a Better Planet for Our Children:...

June 6, 2025

Drilling Down Into Gold and Silver

January 13, 2024

Here’s Why Growth Stocks Outperformed Last Week!

December 9, 2023

Semiconductors Making Big Breakout

March 16, 2023

How to Find a BUY Signal Using The 1-2-3 Reversal...

January 15, 2025

New Dow Theory CONFIRMS BULL Phase!

February 28, 2024

Two Defensive Sectors are Outperforming – What Does This Mean?

October 26, 2023

Sensitive Sectors Continue to Prop Up the S&P 500

October 16, 2023

Apple hits Support-Reversal Zone – What is it and Why...

January 6, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025
    • Amazon extends Prime Day discounts to 4 days as retailers weigh tariffs and price increases

      July 9, 2025
    • Breakout Watch: One Stock in Each Sector to Watch Now

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,575 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,660)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,660)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    SOTU’s Not-so-Subtle Implications for the Market

    February 10, 2023

    Chevron: Navigating the Intersection of Technical...

    May 9, 2023

    Another New High for the Year?

    July 19, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here