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Chevron (CVX), Devon Energy (DVN), ExxonMobil (XOM) and Marathon (MRO) are among buy recommendations with positive stock price momentum measured by current price above the 200-day moving average. We hope that positive momentum continues and that some negative trends turn positive again.

Along those lines there may be a change in trend for natural gas perhaps helped by new concern about global warming. Under a declining 40-week average since last spring, six-year natural gas appears to have bottomed in the last quarter and at the recent rate of change may cross back above its 40-week average within the next few months (see chart, Natural Gas Six-Year Futures Strip).

By analogy, six-year oil price may remain below its 40-week average for some additional months (see chart, Oil Six-Year Futures Strip). The lack of positive oil price momentum helps keep our rating of Imperial Oil (IMO) as Hold rather than Buy.

six and one futures

new gas


new oil

Source: Positive Momentum for Energy Majors