Technical Strategy Video:

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The video in this report is only accessible to members

Key Takeaways

  • Energy should outperform into 2022 and recent weakness represents buying opportunity
  • Exploration and Production Stocks likely to outperform Drillers, Oil Services & Integrated
  • Elliott-wave structure and Cycles on WTI both point higher into next year, suggesting WTI and Brent Crude likely stabilize and turn back to new all-time high territory
  • Favorite names include: $FSLR, $ENPH, $FANG, $DVN, $OAS, $EOG, $WLL, $MRO, $PXD, $COP, $GDP

Energy outperformance this year has slowed a bit into November, a seasonally weak time for WTI as relative charts of WTI Crude vs SPX hit meaningful resistance. However, this ratio chart of Invesco’s Equal-weight Energy ETF, (RYE) and lower part of the chart, RYE vs SPY, has formed a large bullish base in recent years. Thus, even on recent consolidation, this should represent a technical buying opportunity for a WTI Crude push back to new highs. Any technical breakout of the “red line” below in RYE v SPY, which intersects highs over the last few years, should lead to some very strong outperformance into 2022 and beyond. Bottom line, recent weakness since late October has not been damaging for Energy, but appears like an attractive time t...

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