The energy sector hasn’t stood out in 2025. It’s not the worst-performing S & P 500 sector, however a year-to-date advance of solely ~6% is clearly trailing the leaders by a huge margin ( XLC +21%, XLK +20%, XLI +16%). That doesn’t suggest we must always ignore it. Beneath the floor, there are some constructive technical developments value noting. If the latest energy comeback try is for actual this time, a number of shares may benefit—one among them is PSX . PSX has accomplished a good job holding close to its highs, particularly in contrast to different energy names. Today, the stock is up, and on the each day chart it’s making an attempt to break above its latest excessive of 135. That’s a essential stage, because it marks the highest of a clear bullish cup-and-handle formation that stretches again to early July. A breakout above this stage would set off an upside goal, utilizing the measured-move technique, of roughly $150. Zooming out, PSX can also be breaking above a a lot bigger weekly bullish cup-and-handle formation. Given the scale of this setup, the upside goal naturally extends a lot higher. In truth, the measured move initiatives above the early 2024 excessive of 175. This would signify a substantial momentum swing, particularly contemplating that up till April, the stock had been in a year-long downtrend. But as we have seen earlier than, when PSX momentum flips from adverse to constructive, the pattern can persist for fairly a while. Another means of viewing this setup is thru the important thing weekly shifting averages—the 13-, 26-, and 40-week averages, proven right here in inexperienced, blue, and crimson respectively. As PSX trended decrease over the previous year-plus, all three averages had been sloping downward and incessantly acted as resistance throughout failed rally makes an attempt. However, starting in mid-2023, when PSX lastly stopped shifting decrease and commenced to rally, those self same averages flipped from sloping down to sloping up. This was most noticeable when the 13-week common crossed above the longer-term averages, a basic sign of an intermediate-term momentum shift. From that time on, these averages supplied assist because the stock climbed to its highs. The hope now could be that PSX is getting into a related section within the second half of 2025, simply because it did within the second half of 2023, which might recommend there’s significantly extra upside to go. Adding to the constructive view, the 14-week RSI has persistently revered the midpoint 50 stage over the previous few months—one other affirmation of strengthening momentum. PSX is also a holding of each the XLE (Energy Select Sector SPDR ETF) and the XOP (SPDR S & P Oil & Gas Exploration & Production ETF) . Both ETFs have struggled lately, however the broader image reveals a promising setup for each. While XLE hasn’t made a lot progress since 2022, it has managed to maintain close to its latest highs. This prolonged consolidation might show constructive, as a decisive push again above the excessive 90s might set off a momentum breakout, doubtlessly carrying the ETF above its prior peak from 2014. The XOP ETF stays nicely beneath its 2014 excessive, as nicely, nevertheless it has been tracing out what appears like a 10-year potential inverse head-and-shoulders sample. Patience nonetheless is required right here, however a breakout above the neckline close to 160 would open up a giant “air pocket” of sunshine resistance. PSX is just one element of each XLE and XOP, but when it capitalizes on the bullish patterns mentioned earlier, it might set a precedent for different energy shares to observe. That type of broad participation would strengthen each ETFs and assist the energy sector regain a extra sturdy long-term uptrend. — Frank Cappelleri Founder: https://cappthesis.com DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and don’t mirror the opinions of CNBC, NBC UNIVERSAL, their mother or father firm or associates, and should have been beforehand disseminated by them on tv, radio, web or one other medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click right here for the total disclaimer.