BPZ Resources Attempting A Reversal

BPZ Resources (BPZ) completed a one year Double bottom formation closing above $2.60. Interestingly, the second bottom has morphed into a 5 months H&S Bottom which has broke out earlier. Volume also has increased 3X giving more confidence in this long trade and a possible reversal and the end of BPZ 5 year decline. Initial target is $3.60. Stop loss @ $2.40

bpz

 

The big picture

bpzw

 

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Petroleum Tops

Two strikingly similar H&S tops on a couple of petroleum stocks.

Oasis Petroleum

oas

 

 

Whiting Petroleum

wll


Diamond Drilling; 3 Patterns The Bulls Dont See

Diamond Offshore Drilling (DO) touched its ever high of 149.30 on the last day of 2007 and has been in a down trend ever since. 3 interesting patterns that have developed in that period;
Starting off with the weekly picture; DO is forming a descending triangle shown in green. According to statistics most descending triangles break to the down side.
Second warning sign is DO medium term trend line (in red) since 2011 broke down today.
On the daily chart DO has completed a 10-months H&S Top with blue neckline.
These are the warning signs and I will leave you to reach your own conclusion on where DO is drilling next 🙂
Awaiting your likes & comments and sharing

DO Weekly

DO Weekly

DO Daily

DO Daily


Eve & Adam In The Forest

Forest Oil (FST) completed 5-months Eve & Adam double bottoms by closing above the neck at 5.45.  The consolidation box prior to the breakout increases confidence in this trade for an initial target of 6.90. NB: stock has a high short float of 24%.

oil, gas, fst, Forest Oil

FST Daily


An Opportunity In Oil Services

There is high correlation between oil prices and oil service companies as shown in the chart below. So I would expect an increase in oil prices will push Oil Services ETF (OIH) upwards.

oil, oil prices, oil services

OIH Vs. OIL

Below OIH has formed a 4 year almost symmetrical Head & Shoulders, but what is interesting is that the pattern failed as of last week by closing above the right shoulder major resistance level of 45.80. This resistance zone is significant because it has kept prices down for over 20 months. I am projecting a possible target of 55.

OIH, Oil, Oil Services, HAL, SLB, NOV

OIH Weekly


Follow Up On Oil Chart

After the breakout (which i bought & got stopped out at a small loss) oil formed a 4-day island reversal and pushed down back into the pattern. This is bearish news for the bulls. Further weakness will be indicated by a close below the right Inverse H&S signaling a Inv H&S failure. My recommendation is to stay away from Oil until it breaks 30.79 on USO ETF shown below.

oil, wti, crude, uso

USO Daily


3 Warning signs about Oil prices

Below is the daily chart of Oil traded with USO. Shows (1) 4months H&S bottom inside (2) a triangle.

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(3) this triangle is inside another larger one as shown on the weekly chart below. The upcoming trend up or down i really dont care will have a lot of momentum

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