Flags Are Flying……..:
And it is not in surrender. Of course, that was a stab at humor but in all seriousness, many charts in the energy sector are bull flagging at the moment, and doing so at 52-week or all-time highs. The OIH is flagging just below the very round 300 number. Flags form after sideways, taut action following a big run to the upside (or downside with a bear flag). And unless one was hiding under a rock for the last year and a half, they would be well aware of just how dominant the group has been. The flags are continuation patterns, meaning they tend to break in the direction from where they came and we are well aware that trends tend to persist, much more likely than they are to reverse. The best investors/traders will demand best of breed names, that deserve their hard-earned capital. Below is a good example of that with the chart of DVN. Admire the distance between the rising 50 and 200 day SMAs and in 2022 has yet to CLOSE a session below the 50 day. And that is in an environment not too long ago there was a very small percentage of stocks above their 200 day SMAs.