Bullish on XLE and Gold Stocks

It is interesting to see a few stocks with double bottoms or bottoming in the energy sector while oil continue to make lower lows:

mini double bottoms broke out already: PBR, MUR, CXO, ANW and FTI.
wider double bottoms: APA, DVN, both XTO and RRC already broken out.

Double bottoms are measured from the top to the bottom and add the height to the break out point to project the target. I like using the Fibonacci Retracement, start at the break out point of $53, drag down to the bottom of the "W" at $43, the target is 200% of the projection at $63.



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Similar observations made also on the Gold stocks, AEM. Employing the same measuring technique, the target is $74.


shorts: still nothing caught my eyes
longs: Energy and Gold

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