Friday, March 20, 2015

Getting bullish on the energy stocks:

I have avoided the TSX Energy sector following the great mid 2008 price spike that effectively ended the 1998 – 2008 linear advance. The TSX energy sector is replicated in the TSX listed iShares S&P/TSX Capped Energy Index (XEG) and Imperial Oil (IMO) is the fifth component by weight out of a total of 57 holdings..

The longer term monthly bar chart of IMO ($47.34) displays the mid 2008 price spike – of about $63 and the subsequent corrections and rebounds that I have numbered from (1) through (5).- all completing a large symmetrical triangle. Note the January 2014 breakout and the subsequent bullish re-test at the lower rising trend line. If IMO can hold here we can do a measured move (more on that latter) up to about $80 – and what is good for IMO is likely good for the entire energy complex



SteveB said...

But what about the chart in $USD on US markets?

A bull market should take place in all currencies no? said...


I assume you mean inter listed like IMO - if so I chart where the volume is - so for IMO the volume is greater on the TSX

On the all currencies issue gold is a bull in EUROs and a bear in US$

Bill C