3 Penny Stocks For The Oil Breakout

Oil has broken the resistance at $66 per barrel. The sellers kept a top on the market since March. Each time the price rose to that level, the sellers overwhelmed the buyers and drove it lower.

But now this resistance has been broken, which means the sellers have finished or canceled their orders. Either way, they’re gone.

With this large amount of supply off of the market, buyers will need to pay higher prices. This sets the stage for a new uptrend to form.

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As oil continues to move higher, there's a good chance oil stocks start to break out and move higher as well. EnLink Midstream (NYSE:ENLC) could be one of them.

Shares are testing resistance at the $5 level. If this resistance breaks, they could make a rapid move higher.

TransGlobe Energy Corporation (NASDAQ:TGA) may also be on the verge of a breakout. As you can see on the following chart, the $1.80 level was resistance in March.

After trending lower, shares have rallied and once again have reached this resistance. If oil continues to move higher, there’s a good chance TGA breaks through and moves higher.

Tellurian Inc. (NASDAQ:TELL) is testing resistance around $4.15. This level was resistance in January and February.