Double Bottom for OXY, Plus VNOM Upside

There are early signs of energy finding support and these two are already moving.

If you have been short energy recently, I have been right there with you.

However, it looks like the price of oil might be finding support which in turn is starting to show up in energy names.

Not every ticker is setting up for the upside trade though. At least not yet.

XLE, the energy sector ETF that holds XOM and CVX in it’s two top spots, is still struggling. Check out the lower lows.

XLE daily candles making lower lows.

Why am I looking at energy for upside trades if XLE is trending lower?

Simply put, there is potential for big profits if you are able to identify strength early in a sector that has been out of favor.

I thought we would need another week before these trade set ups starting to appear, but both OXY and VNOM have shown their strength.

OXY is forming a clear double bottom pattern, poised for a bounce.

VNOM has been holding above the 50-day simple moving average (SMA), powering higher and higher.

I’ve identified the ideal entries and profit taking targets as well as which options contracts I am considering for each.

Let’s get to these two new trade ideas, which makes a total of six for the week!