Technical Analysis: Oppenheimer Sees Opportunity in Energy and Technology (XLK) (XLE) (AAPL) (STX) (APA) (more...)

Technical analysts at Oppenheimer believes that the recent reversal of the S&P 500's eight week downtrend signals that the market is beginning a year-end rally. Given long term trends, Oppenheimer sees opportunity in technology and energy.

Oppenheimer analyst Ari Wald commented, "The S&P 500's bullish reversal of its eight-week downtrend is confirming the start of a year-end rally, and cyclical stocks should be owned given resuming strength in the index's long-term trend, in our view. We think the current opportunity is to buy Technology (NYSE: XLK) and Energy (NYSE: XLE) ahead of a breakout."

Oppenheimer's analysts think that Technology should be bought because weakness has been narrowly focused in a few large-cap stocks. They recommend buying: Apple (NASDAQ: AAPL), Seagate (NYSE: STX), Skyworks (NASDAQ: SWKS), Western Digital (NYSE: WDC).

For Energy, while conscious of the US dollar's rally, Oppenheimer is encouraged about a bullish reversal in the sector's long-term trend and recommends investors position for a breakout of a year-long bottoming formation. They recommend buying: Apache (NYSE: APA), Chevron (NYSE: CVX), Halliburton (NYSE: HAL), Helmerich & Payne (NYSE: HP).

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