10Sep10:47 amEST

Kosmos Drinking Some Milkshakes

Despite crude oil's bounce over the last few sessions, it remains tough to find strong energy charts which withstood the barrage of that sector's bear market (for all intents and purposes) since October 2018. As a result, we have not focused much at all on long ideas in most energy-related stocks both on this website and inside the service for Members for a good while now.

However, with momentum and growth winners unwinding sharply in recent days, we know the rotation down to laggards and value has been a notable development. Some sectors which have benefitted the most include the transports, financials, chips, homebuilders, and the aforementioned energy complex. 

Kosmos Energy Ltd., a smaller cap exploration firm in the XOP ETF, figured to be a hidden gem.

On the KOS daily chart, updated below, we can see that Kosmos has a rising 200-day moving average (yellow line) operating below price, a rare technical circumstance in a still-sloppy energy sector--Most energy stocks are still below declining 200-day m.a.'s, the essence of a bearish trend until proven otherwise. 

In other words, KOS is a strong chart on a standalone basis on its own merits, not just in a relative light to a terrible sector. 

On longer-term timeframes, the stock will eventually need to clear $7 with authority to make a case for a new bull trend. But, for now, KOS is an actionable long idea if oil's bounce stays intact through the FOMC next week. 

Stock Market Recap 09/09/19 ... A Tale of Two Pullbacks


This website is intended for educational purposes only. | © 2023 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site