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3 oil stocks to buy and bull trading for big gains
Being a long-term oil investor is knowing a thing or two about pain. It has been a terribly difficult market for raw materials and other fossil fuels in recent years. But 2020 has taken the proverbial cake. Production wars, a global pandemic that is further wreaking havoc on weakening demand trends, and Wall Street’s optimistic knack for assessing a future alternative energy utopia have crushed oil stocks. Look no further than the spring’s sub-zero futures prices for a commodity once known as black gold. Tesla (NASDAQ: TSLA). Connect the power supply (NASDAQ: PLUG). Enphase Energy (NASDAQ: ENPH). In place of oil, these stocks and many others within the larger alternatives market have flourished. Some like Tesla have even become household names for good reason. And it could always get worse for fossil fuels and oil stocks, but extinction? InvestorPlace – Stock News, Stock Tips & Trading Tips Despite greener and more competitive alternatives, even with the wider consumer approval of a carbon-free energy market, the reality Oil, even in a pandemic , is always everywhere. Petroleum products drive more than our cars, it is in all kinds of household items, including our toothpaste. The arguments against oil investments are well known. But looking at the fossil fuel industry right now, in the price charts, hedged spread strategies appear to be a solid opportunity for today’s investors heading into 2021. 7 retail stocks that will benefit of the 2020 Holiday Shopping Season Here are 3 big oil stocks trading bullish today: Chevron (NYSE: CVX) Total SE (NYSE: TOT) Enbridge (NYSE: ENB) I wouldn’t say it’s time to save the truck in oil stocks. But given the very promising Covid-19 drugs from Pfizer (NYSE: PFE) and Eli Lilly (NYSE: LLY), tomorrow may be a bit more like yesterday, in a good way. And with encouraging price charts and a partisan congressional intention to stop any packaged Green New Deal, the hedged contrarian positions in the next three oil stocks appear to be a good cause for bullish investors. Oil stocks to buy: Chevron (CVX) Source: Charts by TradingView The first of our oil stocks to buy is Chevron. The blue-chip is now the only component of Dow Jones with exposure to the energy sector following a decision in August by index administrators to reduce industry exposure and replace Exxon Mobil (NYSE: XOM) by software giant Salesforce (NYSE: CRM). Dow’s decision was largely based on the decline in the XOM share price as the construction of the index is weighted by price. But it is also common knowledge that the CLC share has slightly superior fundamentals. CVX has also helped its shareholders by making a smart decision this year to cut its dividend and act more aggressively to cut costs. Technically, Chevron’s advantages are now complemented by a price chart showing definite signs of lows. After a slightly undercut double bottom that broke trend support in March, this oil stock’s shares formed a well-supported lower pattern. Coupled with a monthly confirmation of the candlestick price this month and a bullish stochastic pattern, CVX is an oil stock to buy today. Preferred Strategy: Jan $ 72.50 / $ 90 Collar Total SE (TOT) Source: Charts by TradingView The next stock of our oil stocks to buy is Total SE. US investors may not know Total; unlike Chevron, you won’t find service stations of this France-based “supermajor” oil company in your neighborhood. But if investors are interested in parking capital in the energy space, it can be a big mistake to exclude TOT stocks. Beyond a fairly solid balance sheet and a well-sustained dividend like Chevron, Total has shown a real desire to integrate renewable energies into its energy business. Notably, the company wants to generate 15% of its energy sales from “electrons” rather than fossil fuels by 2030. It also maintains a long-term interest as a major investor in the company. American solar powered SunPower (NASDAQ: SPWR). Instead of Total’s greener ambitions, TOT offers modest protection against the fossil fuel market and perhaps even greater exposure to renewables for investors who buy this stock of oil today. Technically, Total is quite interchangeable with what happened in CLC this year. And again, this price action looks bullish to investors who have an eye on the way ahead. 7 Retail Stocks That Will Benefit The 2020 Holiday Shopping Season Preferred Strategy: Long February $ 35 / $ 45 Enbridge Necklace (ENB) Source: TradingView Charts The latest of our oil stocks to buy are Enbridge stocks. ENB is another international company and a lesser known but very influential player in the industry. Based in Canada, this company is one of the largest mid-market companies in North America. And judging by the stronger-than-expected third quarter results last week, despite the tough environment, Enbridge is doing a lot, which is drawing the attention of analysts and investors. Technically, ENB stocks have held up better than most in a battered fossil fuel market and have outperformed CVX and TOT significantly in recent years. It hasn’t always been pretty of course and like its peers, March has been particularly ruthless for shareholders. But that oil stock has formed a more imposing high-level bullish double bottom on the price chart since its high in late 2014 alongside the top of the oil market. A small source of concern at the moment is how Enbridge’s stochastics have fallen into oversold territory. Price action also pulled back into a monthly downtrend that was confirmed this month. However, given the bullish trends of the wider model, a slightly shorter collar, which can be restructured to offset some of the current technical uncertainty, seems like a good way to approach this oil stock. Preferred Strategy: December $ 27.50 / $ 30 Necklace Shares Held: As of the publication date, Chris Tyler holds, directly or indirectly, positions in Plug Power (PLUG) and its derivatives, but no other securities mentioned in this article . Chris Tyler is a former derivatives market maker based on the US and Pacific stock exchanges. The information offered is based on his professional experience but is strictly intended for educational purposes only. Any use of this information is 100% the responsibility of the individual. For additional market information and related thoughts, follow Chris on Twitter @Options_CAT and StockTwits. 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