With what’s happening in the world and a new headline, I am eyeing some oil and gas stocks…
I’ve said all week that it’s one of the sectors I’ll be watching due to the conflict in the Middle East…
Then yesterday more news hit that added to my thesis that oil and gas could go higher.
Exxon Mobil Corporation (NYSE: XOM) announced it will buy shale competitor Pioneer Natural Resources Company (NYSE: PXD) for an almost $60 billion all-stock deal.
I’ve thought oil and gas stocks could go higher since they drained the Strategic Petroleum Reserve (SPR) last year.
And there’s a reason XOM is making acquisitions … Do you think they’d make a $60 billion deal if they thought they’d lose money?
No way.
So here are four oil and gas stocks to watch … One of them is my top swing idea right now…
4 Oil and Gas Stocks to Watch
Here are two swing trade ideas and two stocks that could become day trade ideas…
Frontline plc (NYSE: FRO)
FRO is my top oil and gas swing trade idea right now.
It was also one of our IRIS AI picks this week. Our IRIS AI picks swing trades and sends them directly to your inbox with analysis and a trade score — see how it works here.
I like FRO’s chart since it’s breaking out to new 52-week highs — actually multi-year highs.
If you missed the breakout, look for weak open red-to-green moves or another breakout to fresh highs.
NextEra Energy, Inc. (NYSE: NEE)
A SteadyTrade Team member brought up NEE in my morning webinar yesterday…
The stock’s having a nice bounce off recent lows. I don’t like this chart as much as FRO’s, but since it’s so beaten down, it could continue to bounce.
One thing to keep in mind is that we’re heading into earnings seasons, so if you swing either of these ideas, pay attention to the earnings date.
Houston American Energy Corp. (AMEX: HUSA)
HUSA is a low-priced, low-float stock that is more suited to day trading.
This stock had a massive run from about $1.50 to $16 in a few days when the Russia/Ukraine conflict hit newswires in 2022.
HUSA gapped up and spiked on Monday when the latest news headlines hit the market.
But there could be bagholders in this stock since it’s been so beaten down.
It might take a ton of volume and a catalyst to get it to spike like it did in the past. But it’s one to put on your list if we see some of these trashy low-float oil and gas stocks start running.
Imperial Petroleum Inc. (NASDAQ: IMPP)
IMPP is another low-float stock that ran in 2022 on the Russia headlines. It’s also spiked a few times since then but hasn’t had any nice multi-day runs.
It’s slowly grinding back from its recent lows.
And it’s approaching the $2 whole dollar level and a break above that could spark a gap to fill on the daily chart to $2.50.
These aren’t the only four stocks worth keeping on your radar. Basically, if any oil and gas stock comes up on your screener — it’s a potential trade.
Just remember, we aren’t trying to find undiscovered stocks. We want to trade the most obvious stocks in play with solid setups.
So wait for the low float stocks to make a move — they have a history of running and that’s what you need to know for now.
If you see one of these on your scan, make a trading plan based on the levels like we always do.
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Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade