Crude oil prices have been ticking higher for several sessions now, leading many to wonder if this is the start of a longer-term uptrend…or just a blip.
The jury’s still out on that — but a few individual stocks are definitely giving bulls the green light. During the recent rally for oil and gas stocks, the Profit Scanner powered by Recognia identified four names that look to be embarking on new uptrends.
Several technical signals and indicators are giving us reason to believe that these four stocks are looking like strong bullish opportunities.
ConocoPhillips (NYSE:COP)
On Wall Street, the reviews have been mixed for ConocoPhillips (NYSE:COP). Jim Cramer said on Thursday that COP is a “buy,” while others noted that Warren Buffett is out of COP (as of Q4). As far as the Profit Scanner is concerned, though, COP is a strong buy in both the short- and intermediate term.
On Mar. 20, the Profit Scanner identified a bullish Engulfing Line pattern in COP’s chart. The implication here is that buying pressure has finally overwhelmed selling pressure, and that the recent downtrend is due to reverse.
On the chart, it looks like two candlesticks in which the white real body of the second one completely overtakes the black real body of the first — confirming that the bulls have taken over from the bears:
In this case, the Inbound Trend Duration was five weeks, making this an intermediate-term bullish signal for ConocoPhillips. As with many chart patterns, volume is a key factor that helps validate the Engulfing Line…and this particular event happened on more than 10 million shares traded. That’s above average volume for COP of about 35%.
ConocoPhillips has enjoyed several shorter-term bullish signals recently, too. Also on Mar. 20, the Williams %R, MACD and Momentum indicators all turned green, and on Mar. 25, there was a bullish Triple Moving Average Crossover. Specifically, COP stock’s four-day moving average crossed above its nine-day moving average, which in turn crossed above the 18-day moving average.
In other words, COP looks like a good “buy” for short-term traders, as well as a longer-term “hold.”
Cabot Oil & Gas Corporation (NYSE:COG)
Cabot Oil & Gas Corporation (NYSE:COG) also has a strong chart at the moment. COG stock enjoyed two intermediate-term bullish signals on Mar. 20 alone: from the MACD, and a Bottom Triangle pattern.
As you can see in the below chart of COG, the Bottom Triangle consists of two converging trendlines as prices hit lower highs and higher lows. Before the triangle can reach its apex, the stock breaks above the upper trendline, confirming that it has reversed its prior downtrend.
Based on this Bottom Triangle, the Profit Scanner expects Cabot Oil & Gas to reach a target range of $31.50 – $32.20 in the next 21 trading days.
As with ConocoPhillips, the intermediate-term bullish signals have been accompanied by a few shorter-term ones.
The Momentum indicator turned bullish on Mar. 20, and the short-term “Know Sure Thing” (KST) followed suit on Mar. 24. There was a bullish Triple Moving Average Crossover on Mar. 24 (of the four-day, nine-day and 18-day moving averages), and the Commodity Channel Index turned bullish as well on Mar. 25.
Parker Drilling Company (NYSE:PKD)
On Mar. 24, Parker Drilling Company (NYSE:PKD) enjoyed one of the most reliable — and popular — bullish events in technical analysis: the Head and Shoulders Bottom.
This pattern is fairly easy to spot and is marked by three successive declines after a significant downtrend. The lowest low is in the middle (the “head”), with two higher lows on either side at roughly the same level (the “shoulders”).
This particular Head and Shoulders Bottom had an Inbound Trend Duration of 200 days (making this a long-term bullish signal), and the Profit Scanner expects PKD to reach an upside target of $4.80 – $5.10 in the next 133 trading days.
Also this week, Parker Drilling staged a bullish Triple Moving Average Crossover (four-day, nine-day and 18-day), and its Commodity Channel Index and short-term KST turned green as well…meaning it’s a shorter-term “buy,” too.
QEP Resources Inc (NYSE:QEP)
Last but not least is QEP Resources Inc (NYSE:QEP), an integrated oil & gas firm. Mar. 25 was an excellent day for this stock: there was a short-term bullish signal — from the Williams %R — and there were two intermediate-term bullish signals as well. One was a Bottom Triangle (just like COG had on Mar. 20), and the other was a bullish Symmetrical Continuation Triangle.
The latter event tells us that QEP shares broke upward out of consolidation, suggesting that the prior uptrend will continue. As you can see in the chart below, it shows two converging trendlines in an increasingly narrow range, with lower highs and higher lows. The pattern is confirmed when the price breaks above the upper trendline:
The Symmetrical Continuation Triangle carries a target range of $22.80 – $23.20 in 16 trading days, while the target implied by the Bottom Triangle is $25.10 – $26 in 50 trading days. Either way, QEP — like COP, COG, and PKD — is looking like a strong bullish opportunity.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.
