‘Impulsive’ move calls bottom for energy: Trader

The energy sector is easily the best performer over the past week, rising about 4 percent after a dramatic plunge to multiyear lows. And one technical analyst says the long-term bottom is nigh.

"The bottoming process may have begun, if not the bottom itself," Rich Ross of Evercore ISI said Tuesday on CNBC's "Power Lunch." "Keep an open mind for energy."

Ross said the S&P 500 energy sector ETF (XLE), which has plunged below its 150-week moving average, has seen a sharp "impulsive reversal" off of a support level from 2011.

Now, Ross sees a lot of upside in energy stocks should the reversal turn into a long-term rally.

However, Andrew Burkly of Oppenheimer recommends staying away from the sector hit hard by oil's plunge.

"We're in the bottoming process for the overall market, but in energy it just looks like another reversal bounce within this bear market," Burkly said Tuesday, also on "Power Lunch." "We keep getting a little bit more encouragement in the idea that maybe production's going to slow, but that's going to take a long period of time."

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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