“XLE” – the Energy Select Sector SPDR Fund is coming alive again after OPEC+ announced plans of cutting oil production by 2 million barrels a day from November.
But Carter Worth – the Chief Executive of Worth Charting has another strong reason to be long energy stocks.
Technicals are flashing a buy signal as well
Sometimes, it’s just about trend lines. XLE touched down to the penny to a trend line that’s been in effect for two years and bounced perfectly. Every single time the sector has touched down that uptrend line for two years, it’s bounced.
Energy stocks are currently down more than 10% from their year-to-date high.
What Worth likes in terms of individual stocks
Lucrative dividend yield is another convincing reason to be exposed to this space.
LNG is better than XLE while drillers are not as good. It’s ever ascending and never gets parabolic. It’s as orderly as something like United Healthcare. So, stay long, be long.
A day earlier, Invezz reported that Rob Thummel (Tortoise Capital) also recommends buying Cheniere stock as it’s not out of juice yet. It’s a name that feeds right into increased LNG exports from the U.S. to Europe.
The post Pro: buy energy stocks as they’re holding a key trend line appeared first on Invezz.