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Power Play: Bottom forming in energy

Oil and gas drilling
Keith Wood | Getty Images

The energy sector, which is off 19 percent in 2015, is up 5 percent over the past week. This move coincides with a rebound in oil prices. West Texas Intermediate crude has surged 17 percent since August 27.

Gene Peroni, senior vice president and portfolio manager at Advisors Asset Management, tells CNBC's "Power Lunch" the wild swings in energy may be calming down.

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"Energy stocks are establishing integral bottoms, although I do not view the category as timely buys just yet," Peroni said.

WTI and Brent crude are up 2 percent during trading, while the energy sector is higher as well.