Ok, as promised here are a couple more oil and gas stocks I am highlighting because of the currently strong momentum in this sector. Strong momentum because of the rising, or should I say rapidly accelerating price of oil.
The natural gas stock NGAS mentioned in a previous post still has potential, but admittedly it is slow moving at the current ‘oil party’. Plenty of other oil and gas exploration stocks as well as the equipment and service side of the sector are powering higher in strong fast uptrends on big volume all over the place.
Near term I would say that some caution is advised because of crude oils current situation of being in a retest of the mid 50’s level as I mentioned a couple of posts down. It remains to be seen how the price of oil reacts at this level, and whether or not a short to intermediate term consolidation is in order. Usually at previous highs this is the case. It would be very unusual, (although not impossible) for crude oil to just blast through 55 without taking a breather.. For now regardless of what crude oil does, these two oil and gas stocks (I forget if both are in exploration or just one) are good examples of the recent powerful moves in this sector.
MHR and WHQ are the two I am highlighting here.
MHR is below with solid power uptrend, power spike demand buy in January. Trigger is 17.00 for MHR just above the blue line), and then risk management just under resistance, say about 16.5. Hard to say if MHR will consolidate sideways a bit more here, either way, 17 and higher is green to me.
WHQ is consolidating in a sideways basing pattern rectangle formation. The trigger here is 27.00 and higher, or just above the rectangle (above blue line)
These two were cherry picked out of many other oil and gas stocks… again, one of the variables here could be oils reaction (test) from its old 52 week high…
Peace.
Im out.
Thomas.