Energy stocks have made a comeback as oil prices spike to new multi-quarter highs.
"The energy complex remains one of the more noteworthy technical developments underway," market strategy and sector research firm Fundstrat noted on Tuesday.
" Energy stocks are beginning to rally through their September highs after pulling back to key support last week at rising 50-day moving averages. In contrast to the linear downtrend in place through most of 2017, higher highs and higher lows, the definition of an uptrend, are beginning to develop. In addition, many stocks are rebounding on expanding volume confirming the rebound," the firm added.
In light of those patterns, Fundstrat views EOG Resources Inc (EOG - Get Report) , Concho Resources Inc (CXO - Get Report) , Devon Energy Corp (DVN - Get Report) , Marathon Oil Corp (MRO - Get Report) , and SM Energy Co (SM - Get Report) to be attractive investments at current levels.
The firm considers Chevron Corp (CVX - Get Report) , Halliburton Co (HAL - Get Report) , Pioneer Natural Resources (PXD - Get Report) , Range Resources Corp. (RRC - Get Report) and ENSCO PLC (ESV) as "timely, bottoming laggards."
Fundstrat notes risks to this thesis, namely that oil is nearing its next resistance point and a pullback or pause would "not be surprising."
Energy stocks aren't the only tickers rallying. The financial sector has soared since Donald Trump's election:
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