Crude Oil Technicals – Wavefront Energy WEE (TSX – Venture) Oil Production Service Provider

by Olivier on September 22, 2009

Tonight I will talk about energy. To be more precise it is really about oil I will expand on. I recently wrote about a possible false break to the downside in crude oil. The charts tell me this assumption is still valid. I recently removed AEN.TO – Antrim Energy from my public list. Bad timing as the stock literally went up the moment I took it off the list. QEC.TO – Questerre Energy is another stock that has done very well. As a matter of fact lots of energy related stocks have popped up in my above average volume scans lately. Lots of low priced oil and natural gas stocks that have been hammered and obviously are now refusing to move lower. Lots of them have long tight bases and they are starting to break out. They might trade that way in expectation of higher oil prices ahead. We will see. The daily oil chart is forming an ascending triangle which implies a break out to the upside.

The weekly chart shows how price has reentered the blue channel. If it can move up from here the upside potential should be significant:

Oil - Weekly

Always up-to-date Weekly Crude Oil Chart on my public list.

The daily chart shows a bullish ascending triangle chart pattern:

Oil - Daily

Always up-to-date Daily Crude Oil Chart on my public list.

Wavefront Energy is an oil production service provider I recently added to my public list. A nice thrusting move on above average volume. Now I wait for some kind of consolidation for a possible entry. They have recently announced a contract with ECA.TO – Encana. I think this stock has the potential to develop into a picks and shovels stock for the oil industry. Time to closely watch how it evolves over time:


Always up-to date WEE.V – Wavefront Energy Chart on my public list.

Have a great evening!

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