Energy sector bursting into leading quadrant on Relative Rotation Graph, strong potential for EOG and COP
The Relative Rotation Graph above shows all the members of the S&P 500 Energy sector against XLE, the ETF that tracks the Energy sector price index.
The main reason for looking at this universe at the moment is the fact that the sector (XLE) on the RRG for US sectors is about to burst into the leading quadrant (chart further down in the article).
The chart above highlights a few areas of interest which I will dive into a bit deeper.
We will investigate the cluster of stocks inside the weakening quadrant as well as the cluster of stocks on the opposite side, inside the improving quadrant. Also inside the improving quadrant, ESV draws attention at the high JdK RS-Momentum level and its long tail.
Inside the lagging quadrant KMI, WMB, and SLB show (further) weakness, while there are a number of stocks inside leading that are powering ahead.