Energy Stocks Preparing For A Bounce
Elliott Wave Forecast | Mar 14, 2017 01:13PM ET
2016 was a good year for Energy Stocks as oil and gas price rose significantly helping expected bounce in Crude Oil that will help these stocks to find a floor for the recent decline .
Energy Stocks Elliott Wave View
CVR Energy Inc (NYSE:CVI) is currently correcting the bullish 5 waves cycle from November 2016 low as a triple three structure reaching equal legs area $20.48 – $19.56 . The move can extend lower toward the 50%-61.8% Fibonacci area ( $18.98 – $17.34 ) as a double three but will remain supported as the stock is still looking for a move higher toward at least $31 to finish 3 waves correcting 2014 cycle . If the stock fails to make new highs after bouncing from the current inflection area , then the pullback can extend lower against $12.03 low which should hold to allow CVI to the resume higher later on.
EQT Corporation (NSYE: NYSE:EQT) failed to make new highs and it’s now doing a double three correction from June 2016 peak which already reached the extreme area at $85.17 with enough number of swings to end that cycle. However in the short term, the stock can still extend toward the equal legs area $50.67 from December 2016 peak before buyers show up to resume the rally or bounce in 3 waves at least while holding above $47.10 low
Recap:
Energy Stocks approaching a technical area where Elliott Wave analysis is pointing to a potential recovery in the coming weeks that will be supported by a rise in Oil prices. The Energy sector still needs a clear break above the recent peaks to confirm a bigger move to the upside that will help these stocks for further gains.
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