Watchlist Addition April 29th: Contango Oil and Gas (MCF)  MCF is a Gulf of Mexico oil and gas producer.  Notice how the stock is near the bottom of range.  I am watching this name for upside in coming weeks.

UPDATE May 1st:  MCF triggered a long entry at $54.63 this morning.  

UPDATE May 15th:  MCF has remained remarkably resilient to the drop in broad markets in recent days.  I remain long this name.

UPDATE June 10th:  I remain long MCF.

disclosure: I am long MCF

Watchlist Addition April 29th: Westport Innovations (WPRT)  WPRT is a natural gas engine maker who's stock has sold off hard in recent months.  The shares bounced off the $30 support level on Friday and may have more upside in coming weeks.

Update May 5th: WPRT rejected the 200 dma yesterday.  I closed my position for a small loss.

disclosure: position closed

Technical Alert April 18th:  Rex Energy (REXX) This gas heavy E&P company has been take to the woodshed in 2012.  But at $9 the stock is woefully undervalued and due for a bounce.  The 2010 lows are at $9.00 (green line) and we could see a bounce off this support level in coming weeks. 

UPDATE April 23rd:  Bought REXX long at $9.45 

UPDATE April 27th: I remain long REXX from $9.45 and will add on any weakness.  Stock broke above $10 yesterday.  This could be a huge trade if nat gas prices hold onto their recent gains.

UPDATE May 1st:  REXX is breaking to the upside ahead of earnings tonight.  I am holding my long position through this earnings report.

disclosure:  long REXX

Technical Alert April 18th: Pioneer Natural Resources (PXD) is holding a strong uptrend (bottom green trend line).  Also notice how the stock has been consolidating since mid February.  Low ADX means this stock is ready to break into a new trend.  Given the strong uptrend I think the next move is higher.

UPDATE April 27th:  PXD is making a solid move higher out of the consolidation I pointed out on the 18Th.  I suspect PXD will test the $120's in the near future.

disclosure: No position yet

Technical Alert April 18th: Halliburton (HAL) oil services company reported earnings this morning well above analyst estimates.  Also notice how the stock is coming off multi-month lows (bottom green line).  Profit target is the upper green trendline and 200 dma.

UPDATE April 27th:  I remain long HAL.  stock is chopping around in the $34-$33 range.
UPDATE May 1st:  I added more size to my long HAL position today.
UPDATE May 15th:  HAL has broken through support at $32.00 and looks ready to test $30.00 tomorrow.  I sold half this position yesterday to lighten up and plan on buying back in at $30.00

disclosure: I am long HAL

Crude Technical Alert April 10th:  WTI dropped below $101 today and looks like it will test $100 either tomorrow or the next day.  Do you think it will break below $100?  Personally, I think we get a bounce.  Whether we hold above $100 in the long run depends on the strength of the coming bounce. 

Also note... very important global meeting with Iran this weekend.  Fireworks will fly if the meeting doesn't go well...

UPDATE April 12:  Crude bouncing ahead of weekend meeting with Iran.  Pivotal time for oil prices...

UPDATE April 17th: WTI has rallied back over $104 on the bounce...

UPDATE April 18th:  WTI dropped on a larger than expected inventory build...

Have any thoughts on the direction of oil prices? Post them below!

Popular question concerning natural gas prices:  Prices are so low ($2.03 today).  How much lower can they go?

Answer: the US is expected to run out of storage space for nat gas this summer.  Once that happens, I think we will see a capitulation in nat gas.  But that capitulation could come at much lower prices.  It's not out of the question for nat gas to trade at $1.25-$1.50 this summer.

UPDATE April 17th:  Nat gas broke below $2.00 today...

What are your thoughts?--- post in the comments section below...

Watchlist Addition April 10th:  Northern Oil and Gas (NOG): Here's a great Bakken producer with an efficient non-operator model.  Shorts have taken control of this name over the past few weeks, but its starting to show signs of life at the $20 support area.  Notice the falling wedge, and also notice the ADX rising above the -DI line (red circle).   This is a classic v-bottom setup.  No entry yet, but I am keeping a very close eye on it.

UPDATE April 12th:  Added to my NOG position at $20.50 this morning.

UPDATE April 17th:  NOG took a dive yesterday along with other oil and gas names.  I lightened up my position at a small loss, but I am still holding a core position from $20.90.  Patience on this one... 

disclosure: I am long NOG from the $21 area.

Energy stocks are getting smoked over the past few days.  However, the receent sell off is creating some very good buying opportunities.  Best to keep cash levels high for now and stalk low-risk/ high-reward trades.  I will post them as I see them....

Watchlist Addition April 4th:  Devon Energy (DVN) - Pullback to MA support after a high volume breakout a few months ago.  For an aggressive entry buy now.  For a more conservative entry wait until a break above the red resistance line at $73.00 for entry.  Company just announced they're increasing cap-ex spending by $1 billion for 2012.

UPDATE 4/10:  DVN broke below support on the broad market sell off today.  If you took the aggressive entry at the trendline support on April 4th you should have closed the trade for a small loss today.  Still a good long opportunity, but wait for a better setup.  I will be revisiting this one soon.

disclosure: no position in DVN yet.

Watchlist Addition April 3rd: Northern Oil and Gas (NOG) - Watching for a breakout above $21.25.  Notice the price compression on the hourly chart.  Low ADX reading means big price movement coming soon.  This is an aggressive trade because NOG is in a short-term downtrend.  But with the high short interest in this name it could get a nice short-covering pop.

UPDATE 4/4: Broke below support on weak broad market open and falling oil.  Breakout above $21.25 didn't happen, so no entry on this pattern yet.  Will keep watching.

disclosure: I am long NOG

Energy stock technical pattern watchlist for April 2nd, 2012

LNG:  Bull Flag- watching for a breakout above $15.00

UPDATE 4/3: Long from $15.10 and holding

UPDATE 4/5: Broke over $16 today and testing recent highs at $16.50

UPDATE 4/10: CLOSED LNG LONG TRADE @ $16.00

FSYS:  Bull flag- Buy the bottom of the flag now, or wait for a confirmed breakout above $28.00

UPDATE 4/2: FSYS broke below support today. Pattern negated.

WTI: 200 DMA bounce- stop under last Thursday lows.

UPDATE 4/3: Holding long, needs to move soon though.

UPDATE 4/16: Stopped out of this trade last week when it broke below support.

ROYL: Trendline and Moving Average support

disclosure: i am long ROYL at $5.09

UPDATE 4/3: Closed ROYL @ Breakeven- Time stop