The legendary Marc Chaikin tells TheStreet that from a historical point of view, the moment is right for investing in energy sector stocks.
According to his analysis in the last 10 years, the next 3 months (21 August - 21 November), energy stocks have a great potential to increase more than the SPX index. The survey shows that the group of stocks in this sector are the second best performing on the market after the technology one.
An additional prerequisite for looking at the energy sector is the expectation of the NAFTA agreement between Canada and the United States. This would have a positive effect on the oil prices, which in turn would be good news for oil companies.
Technically, the MSCI Energy Sector Index tries to make a breakthrough over 50SMA, and if a successful one comes, it can give a boost to breakthrough diagonal resistance. Historically, for the period August - November last year, the index has risen by about 11.75%.
Chart: Used with permission of Bloomberg Finance L.P.
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