Chartology: Bull Trades In Bear Territory
If you think the energy trade is running out of steam think again! There are some bull plays in this otherwise bearish sector, at least according to the charts!
With the energy sector having taken such beating some areas could now be worth a closer look, according to Barron's online technical columnist Michael Kahn.
Specifically, Kahn likes the chart of the Energy Select Sector SPDR (XLE). Going back one year he sees support right around this ETFs current level making it a potential buy around $65 or so.
This 5 year chart of Diamond Offshore (DO) reveals a classic long term bull market trend, according to Kahn. He thinks the stock is nearing support levels and sees technical reasons to like this stock in the near term.
The one year chart of Sunpower (SPWR) also looks bullish to Kahan. “The slightly rising bottoms reveal a nice rshort term trend,” suggesting this stock could go higher.
To see the complete analysis including the actual charts used by Michael Kahn please watch the video.
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Trader disclosure: On Sept 4, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (WMT), (UUP), (ATVI), (MSFT), (CY), (EMC): Adami Owns (C), (GS), (INTC), (AGU), (BTU), (MSFT), (NUE): Finerman Owns (GS): Finerman's Firm Owns (AAPL) Call: Finerman's Firm Owns (AEO), (MSFT), (NOK), (SUN), (TSO), (VLO), (JCP), (JNJ), (RIG), (PDE); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Is Short (BAC), (XLF), (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (WFC), (BBT), (WB); Finerman's Firm Owns (JCG) Calls. (IRF) Calls: Pete Najarian Owns (AAPL) And (AAPL) Collar; Pete Najarian Owns (LEH) Call Spread, (LEH) Put Spread; Pete Najarian Owns (LMT) Put Spread; Pete Najarian Owns (MS) And Is Short (MS) Calls; Pete Najarian Owns (NOK) And Is Short (NOK) Calls; Pete Najarian Owns (XLF) And (XLF) Collar
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