BALTIMORE (Stockpickr) -- If there's one sector you didn't want to own in the last six months, it's energy sector. As oil prices have plummeted since last summer, the energy sector has seen its profits shrink -- and its share prices tumble in kind.
But as nasty as it's been to own these stocks lately, counting oil and gas stocks out in 2015 might be a bigger mistake. That's because while crude prices remain deflated this spring, some energy sector names look primed for breakouts. That's a rebound you won't want to miss, especially considering how hard to come by performance has been in the broad market this year.
That's why we're turning to the charts to find five big energy stocks to buy for breakout gains this month.
For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.
Without further ado, let's take a look at five technical setups worth trading now.
Up first is refiner Tesoro (TSO). It's easy to think that anything exposed to the energy sector has been selling off this year, but that's just not the case. In fact, shares of Tesoro have been stomping the rest of the S&P 500 in 2015, up more than 18.7% since the calendar flipped to January.
Don't worry if you missed the move, though. TSO looks primed for another leg higher in the near-term.
Tesoro is currently forming an ascending triangle pattern, a bullish price setup that's formed by horizontal resistance above shares at $95 and uptrending support to the downside. Basically, as shares of TSO bounce in between those two price levels, this stock has been getting squeezed closer and closer to a breakout above our $95 resistance level. When that breakout happens, we've got our buy signal.
Relative Strength, down at the bottom of the chart, adds some extra evidence to the upside in TSO. That's because relative strength has been in an uptrend of its own over the course of the price uptrend, which indicates that Tesoro isn't just moving higher -- it's outperforming the rest of the market long-term.
As long as that relative strength uptrend remains intact, expect Tesoro to keep beating the S&P.