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business newsUpdate on Four Oil and Gas Stocks Powering Ahead
Charts are presenting bullish technicals, so revisit them for potential entries.
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Proshares Oil and Gas (DIG)
DIG has moved up $1 and change since we first took a look at it. It appears to have jumped above the initial resistance around $30.00. With commodities enjoying a solid week, a trader should watch for continued upside in this ETF. If traders were following my original trade, a partial position will now be held with a stop below $25.90. The add-on was to happen with a break over $30.60, and strength this week could allow such a position to be taken. The true bullish sign for a trader will be when the second horizontal trendline is taken out on volume. At that point, a trader could hold a full position in DIG.
Devon Energy (DVN)
What a work of art we have in DVN. This week’s close was a perfect kiss on the cheek of the overhead resistance, giving a trader even more belief in the upcoming technical moves that DVN will make. Phase one is now complete, with DVN taking out the first resistance at the 50 MA. If you’ll recall, I mentioned 2 more areas of resistance before DVN motors ahead and those are the upper trendline and the June high of $67.40. While a trader would be wise to buy a piece of DVN in anticipation of the breakaway move, the real momentum will happen when we have all 3 of these technicals underneath as support. The fly in the ointment that we need to be aware of is holding support at the 50 MA, with any close below this giving a trader room to pause.
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