The XLE energy ETF hit its lowest level since before the November presidential election in Friday trading, as WTI crude oil logged a 7 percent loss on the week.
"You still have supply growth that's overhanging the market, and the OPEC tailwind is being overshadowed by that," David Seaburg, head of equity sales trading at Cowen and Co., said Friday on CNBC's "Power Lunch," referring to the tug of war between OPEC production cuts and increasing U.S. supply.
"On the [trading] desk, we're seeing nothing but sellers in all these names, and especially the winners," he added. "I think even the bulls are capitulating here."
With so much bearishness in the market, however, we're "getting closer to a bottom," Seaburg said.
Looking at the XLE, which closed Friday trading at $67.80, the trader commented that "$65 is the 'line in the sand' where you close your eyes and buy it. I'd start picking away at these [current] levels and then get more aggressive if we see more downside."
Larry McDonald, of ACG analytics, is also bullish on energy stocks—but for reasons that have more to do with Washington, D.C. than Cushing, Oklahoma.
He said Friday on "Power Lunch" that many energy companies pay high tax rates, which means that "as the perception of tax reform comes back in the next couple of months, we could see a lot of upside in the XLE."
"Now's the time you want to be leaning into some of these names," McDonald said.
Energy giants Exxon Mobil and Chevron collectively make up 39 percent of the ETF, which is down about 10 percent this year.
