The energy sector has been the clear leader in 2022, rising 22.2% in only five weeks. Below, we see the monthly graph of ConocoPhillips. Note the breakout from a seven-year trading range. This breakout points to a $110-$120 target. The share price is already extended, but the bullish projection is supported by the upturn in relative strength as depicted by the green line. A seven-year relative downtrend has been reversed.
The second graph is the monthly price performance. The stock is in its best seasonal time period. In fact, from February 9th through June 2nd, the share price has risen by over 73% for a gain of 6.1% over the last 41 years.
In only five weeks, the spread between the leading energy sector and the laggard sectors is so great that it suggests that energy will be the leader for 2022 as it was in the 1970s. This sector performance is one of many parallels between the current period and the 1970s decade.
COP Monthly
COP Monthly Histogram
Blue: Average Percentage Change
Red: Probability of a rise on that day
Green: Expected Return (Product of the first 2)
