Several oil plays including Exxon stock are in buy range after breaking out from bases.
Oil stocks were in focus Monday, as gasoline prices got a jolt over the weekend after the largest pipeline carrying fuel from the Gulf Coast to the Northeast was shut down. The operator, Colonial Pipeline, halted pipeline operations Friday following a ransomware cyberattack.
Oil prices have also rallied as the economy continues to rebound from pandemic lockdowns. On Monday, West Texas intermediated crude prices climbed 0.1% to around $95 a barrel.
Exxon Stock On Win Streak
Exxon Mobil (XOM) gapped up and rose 1.4% to clear a 62.65 buy point of an eight-week cup base, according to MarketSmith chart analysis. Shares remain in a buy range that tops out at 65.78. The base is second stage, which suggest Exxon stock could have plenty of runway ahead. Stocks often make their biggest run out of such early-stage bases.
Exxon stock is on track for a sixth straight advance since the company reported better-than-expected Q1 results April 30 after the close. The Irving, Texas-based oil giant earned 65 cents a share on revenue of $59.15 billion. Analysts expected 59 cents in EPS on $55.2 billion in sales.
Pioneer Natural Resource (PXD) also sits in buy range after breaking out past a 169.59 entry of a cup base. The buy range goes up to 173.87. Volume, though, was running lower than usual. The strongest breakouts tend to occur in volume at least 40% higher than normal. Pioneer’s cup base is first stage.
After a couple of acquisitions, Pioneer Natural Resources, also based in Irving, Texas, has become the top producer in the Permian Basin of Texas and New Mexico and is boosting returns to shareholders.
Pioneer and Exxon shares gave back most of their price gains in late trading.
Callon Petroleum (CPE) surged 12% early Monday, before trimming its gain to about 5%. Shares broke out past a 42.41 buy point of an eight-week consolidation in volume about 80% higher than usual. Callon stock remains in buy range, which tops out at 44.53.
PetroChina (PTR) gapped up to a 14-month high. That sent the stock past a 40.59 buy point of a nine-week cup base. Volume was tracking about 19% higher than average. The buy range from the 40.49 entry goes up to 42.62.
In PetroChina’s case, a higher buy point of 41.34 is also in play, since the stock gapped up past the left-side high. The higher entry is based on the first five minutes of trading in the gap-up move.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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