On the face of it, energy companies would seem like a strange place to look for investment opportunities. Indeed, the industry has been incredibly hard hit by the global pandemic and the ensuing market collapse.
However, scanning chart after chart I see a lot of basing patterns, and now many in the industry look as though they are coming out of the other side.
ET, Energy Transfer LP, looks particularly good on the daily GoNoGo Chart. We’ve seen a rounded consolidation after the extreme drop (over 70% since early year highs) and a smooth transition through the trend colors. First the GoNoGo Trend painted amber bars and that was followed by the “Go” flag and blue bars.
The GoNoGo Oscillator is picture perfect also, staying below zero during the downturn, breaking above zero in early April and already finding support at the zero line.
Investing here though is certainly not for the faint of heart! Obstacles abound, the weekly chart is still strongly “NoGo” and there is likely to be significant resistance overhead from the large runaway gap on March 9th. We have already seen this level hold as resistance a few days ago.