Energy Sector Breakout Refiners and Natural Gas
LaDucTrading
· Conviction: 80%
· Horizon: 6M
· 2026-03-24
Refiners like PBF and VLO are breaking out of long-term bases and have significant upside potential.
PBF Energy and Valero are showing strong technical setups, bouncing off moving averages and breaking above key resistance levels with targets indicating potential doubling in price.
| Instrument | Side | Target | Reason |
|---|---|---|---|
| PBF | Long | 70.0 | PBF held above the 400-week moving average and the 34 support level. A 1.618 Fib extension points to around 70. |
| VLO | Long | 260.0 | Valero bounced beautifully off its 400-week moving average, targeting a double in price near 260 after clearing long-term resistance. |
Natural Gas and E&P stocks represent bottom fishing plays breaking out of long-term downtrends.
The FCG index and its components like COP, EOG, and OXY have successfully defended long-term support levels and are reversing upward out of wedge patterns.
| Instrument | Side | Target | Reason |
|---|---|---|---|
| FCG | Long | The natural gas index ETF has broken out of a heavy wedge pattern and is demonstrating strong upward momentum along with its top constituents. |