Energy Sector is currently experiencing a symmetrical triangle pattern. This sector is the best performing one for many months, so it’s worth to check the pattern.
Looking at below picture, the price is completing a triangle pattern a sooner or later it pierces through one or the other blue line. When the price goes up, we can expect to continue towards its next likely resistance around 92 (orange line). When the price breaks through 50 SMA, it would continue towards 200 SMA, which is its next likely support level.
Keep also checking On Balance Volume, it’s above the red line now (upward desire), but seems like can pierce down, which would indicate a change of direction.
The sector demonstration gives you also an opportunity to buy some individual energy companies, where you need to simply pick the best performing ones.
