Remember last week I talked about the sectors and some of the stocks I have my eyes on in March?

My March watchlist is mostly a combination of Biotechnology, Energy, and some Beverage stocks that I’m looking to swing trade. 

Well, since the start of this week, small oil/gas penny stocks have absolutely been my focus.

I’ll share a couple of them that I expect to do well (and I’m looking to swing trade)…

As well as the strategy I have in mind to make the most of them.

Without wasting time, let’s jump in. Here are the stocks I’m watching closely (and trading) this week: 

  • HUSA
  • INDO
  • CEI
  • USWS
  • NINE
  • ENSV

As you know, the ban on Russian oil, coupled with a ‘de facto ban’ on Russian Urals, has been sending energy stocks higher. I’ve already seen good results with some of these penny stocks, and I’m mostly focusing on the Fibonacci retracement.

My Strategy For These Stocks? Fibonacci Retracement

In the last few weeks (or months), you’ve probably heard me talk about the Fibonacci retracement a couple of times.

It’s a technical analysis tool in my arsenal that I frequently rely on for finding areas of support and resistance levels (or reverses in price).

Most traders like to use this strategy with other chart patterns like the bull flag or technical indicators like moving averages.  

Here’s a quick reminder:

When a stock is trending very strongly in one direction, traders using the Fibonacci indicator believe that the pullback will be equal to one of the percentages within the Fibonacci retracement levels — either 23.6%, 38.2%, or 61.8%.

Here’s a quick example; if a stock’s price jumps from $20 to $21, the pullback is likely to be roughly $0.23, $0.38, or 62 cents.

As you know, a good time to enter a trade is when the stock is going through a pullback. 

So if you see a stock drop by 38 cents (a Fibonacci ratio) from say $31 to $30.62, that may be a good opportunity to buy, as the stock will likely bounce back up.

Another example: If it jumps from $40 to $50, then it will be in increments of 10. To calculate the 61.8% Fibonacci level, multiply $10 by 61.8% (10 x 0.618 = 6.18) and subtract the result from $50 to get the 61.8% level ($50 – 6.18 = 43.82).

Some Successes So Far

Nine Energy Service, Inc. (NINE) — with a Market Cap of 130.97Mis a Houston-based oilfield services company that offers completion solutions within North America and abroad. 

If you’ve been looking at the news, you may have seen this stock trending.

Most traders (and surprisingly, institutional investors) believe this is among the energy stocks that are gaining from recent oil price spikes.

On Monday, March 7, the company announced fourth quarter and full year 2021 results, which sent the stock price soaring. In fact, the stock is up more than 480% over the last 5 days.

CEO of the company, Ann Fox, is pretty confident about their growth and said…

“…with what we know today, we anticipate revenue and earnings to improve each quarter throughout 2022.”

I jumped into NINE already and have already made something nice out of it — profiting 5 out of 7 trades, with the recent one netting me an 11% gain. 

As always, I preach and practice rinse n repeat. As usual, you can catch all the details on my trading journal here.

Jason Bond


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