In a recent report, analysts at MKM Partners took an in-depth look at the energy sector. While energy stocks lagged during 2014, many of them have outperformed in recent weeks. Analysts believe that several names in the space have plenty of room for further upside.
Selection Remains Key In MLPs
A major focal point of the report was energy master limited partnerships (MLPs). Analysts chose their top eight recommended MLPs to buy and their top four MLPs to sell based on technical analysis.
Analysts note that MLP selection remains critical until the Alerian MLP Index (NYSE: AMZ) exhibits a clear trend.
Names To Buy
1. Alon USA Partners LP ALDW 3.19%
Alon recently broke out versus the AMZ, and it is currently testing resistance levels on its standard price chart as well.
2. Buckeye Partners, L.P. BPL 0.35%
Analysts believe that a March breakout of Buckeye versus the AMZ is an indicator of a coming upside breakout from the pennant formation on its standard chart.
3. Enbridge Inc ENB 0.84%
Enbridge exhibited strong April technical breakouts on both its standard chart and its chart versus the AMZ.
4. Energy Transfer Equity LP ETE 0.22%
Analysts see a strong, clearly defined uptrend in Energy Transfer’s chart versus the AMZ, and they believe that this strength will further propel the MLP above current resistance levels on its daily chart.
5. Global Partners LP GLP 0.65%
Global Partner’s big breakouts on both its standard chart and its chart versus the AMZ happened as recently as the past several trading days.
6. TransCanada Corporation (USA) TRP 1.12%
TransCanada recently broke above resistance that had held since December on its chart versus the AMZ.
7. Western Gas Partners, LP WES 0.91% and
8. Western Gas Equity Partners LP WGP 0.08%
Western Gas has formed a clear uptrend versus the AMZ, and a breakout above its current trading channel on the daily chart could be imminent.
Names To Sell
In addition to the MLP buy suggestions, the report includes the following list of four MLP’s that MKM recommends selling:
1. Alliance Holdings GP, L.P. AHGP 2.07%
2. CenterPoint Energy, Inc. CNP 0.24%
3. Dorchester Minerals LP DMLP 0.52%
4. Emerge Energy Services LP EMES 1.72%
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