close icon

Hess Corp. to Enjoy the Looming Energy Deficit

The world has finally awakened to the looming climate change catastrophe and is suddenly rushing its way towards renewables. New oil and gas exploration projects are hardly being approved, while the world is still heavily-dependent on fossil fuels. This threatens to create a huge supply-demand imbalance, which can result (already results?) in much higher energy prices.

For better or worse, one of the consequences will be higher profits for the companies in the sector. The stock of Hess Corporation, and oil and gas exploration and production business, seems poised to rise in the long-term already. Take a look at its Elliott Wave chart below.

Hess Corp Stock Poised for a Long-Term Uptrend

Between 2008 and 2020, Hess Corp. stock fell from $137 to as low as $26 a share. This 81% decline corresponded to the crude oil bear market, which culminated in the spring of 2020 when prices went into negative territory for the first time ever.

Bulls Seem Eager to Lift Hess Stock in Coming Years

From an Elliott Wave standpoint, the important thing is that Hess’ 2008-2020 bear market looks like a simple (A)-(B)-(C) zigzag correction, where wave (B) is a triangle. According to the theory, once a correction is over, the preceding trend resumes.

And indeed, as the world economy began to reopen in the second half of 2020, energy was suddenly in short supply. The price of WTI crude oil climbed to $85 a barrel and Hess stock climbed with it. By October 2021, the stock was already approaching $93 a share, up nearly 260% from its 2020 bottom.

Furthermore, this surge is shaped as a five-wave impulse pattern, labeled 1-2-3-4-5. Impulses point in the direction of the larger trend, so once wave (2) is over, it would make sense to expect more long-term upside. Eventually, a new all-time high is there for the taking for Hess Corp. investors.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Stock Split Did Not Change The Trade Desk ‘s Pattern

Ten months ago, in March, 2021, we wrote that The Trade Desk stock can “exceed $1000, but not by much.” Shares were hovering around $750 at the time and, in our opinion, were extremely overvalued. Nevertheless, our Elliott Wave analysis suggested more upside ahead, before the bulls gave up. On June 17th, the company executed…

Read More »

SNAP ‘s Gains Disappear Just as Quickly as Messages

Snapchat is famous for deleting all messages sent over the platform immediately after they’ve been viewed by the recipient. And while this feature is appreciated by the company’s core demographic, investors hardly like it when their SNAP stock gains do the same. Unfortunately, that is exactly what has been happening since late-September. SNAP stock is…

Read More »

Etsy Stock Rose and Fell as Elliott Wave Predicted

Sales at online marketplace giant Etsy are on track for a 33% gain in 2021 and are expected to add at least 20% more in 2022. The company is growing, profitable and financially stable, yet the stock is down 46% from its November 2021 record of $307.75 a share. Fortunately, Etsy ‘s crash is not…

Read More »

Lululemon Stock – Ahead of the Disappointment

Even though the stock recouped most of yesterday’s losses, Lululemon still disappointed investors with its Q421 guidance. Despite causing a milder illness, the Omicron variant is nevertheless taking its toll on the company’s sales. However, shares have been dropping for quite some time now. The stock is down 28% from its $486 all-time high reached…

Read More »

The Top Might Be In for OneWater Marine Stock

Contrary to common sense, the tough times brought by the pandemic caused a dramatic demand for luxury items. Everything from jewelry to mansions experienced a huge surge in popularity. Recreational boats were no exception. In this respect, few companies benefitted more from the post-pandemic boom than OneWater Marine Inc. The company is a fast-growing premium…

Read More »

Okta Stock Likely to Halve Once It Exceeds $300

Founded in 2009, Okta Inc. is an identity management platform provider for businesses. Its products include API access management, single sign-on, multi factor authentication, user management and lifecycle management. It all sounds very impressive and the company’s $36B market cap makes it sound even more so. Until one finds out that Okta is still a…

Read More »

SAP Stock to Use Dot-Com Bubble High as Support

SAP is the biggest non-US software company in the world by revenue and the largest one in Germany by market cap. At its current stock price of roughly €115 a share, its valuation is higher than $150 billion. That is not much higher than its Dot-Com bubble peak at €77.50 a share in 2000, highlighting…

Read More »

More analyses