06/05/23
As I predicted in this interview with journalist Seth Allen, the second half of this year should be bullish across the board when it comes to oil.
Today’s stock fits in that category, with solid fundamentals and a track record showing monstrous rise since 2020, when it was under $2.
Let’s dive into Houston-based SilverBow Resources, Inc. (SBOW):
Why am I looking at weekly charts recently?
You can blame the energy sector for that.
I’ve been bullish on dinosaur juice for quite some time now given the underlying macroeconomic and geopolitical landscape, so I’m thinking long term.
(how bullish? watch the predictions I made earlier this year by clicking on the banner below.)
The shortened week started off with a bang, but a higher high was swiftly rejected once traders came back from the holiday…
Using the Fibonacci Retracement, you can see that the index failed to drop.
Instead, it was a pullback to 61.8%-70.5% levels…
(My ideal retracement.)
On the lower chart, Volume Accumulation briefly went red, only to turn positive early yesterday morning…
Now, the first real clue we have is off of the TTM Squeeze/Ballista which is a combination of a regular 20-period and 40-period squeeze setup.
The green arrow at the bottom notes a divergence where the 20-period went below the zero line and crossed into negative territory… Not the 40-period, though.
This is an early buy signal.
Back to the upper chart…
Yesterday’s blistering move consolidated overnight right where it was previously rejected.
This is after the chart matched the weekly candle’s opening price to the penny.
There are no coincidences!
And if you find higher consolidation in the Asian session, you can bet that the chart will pump higher.
As for an upside target in the near term, I’d look for 4255 and then into the 4260+ levels…
That is, after we get a deep pullback.
The chart needs to reset if it’s going to continue to the highly-coveted 4300 area…
Trade it wisely.
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
