Buy energy stocks now to take advantage of the coming rally, technical analyst says

Halliburton, EOG Resources and Apache are the stocks to buy for the coming energy rally, Chris Verrone, partner at Strategas Research, told CNBC on Tuesday.

"There is a trade here within this energy sector," the technical analyst said on CNBC's "Fast Money." "And let's keep in mind, the backdrop is crude oil. If you look at the Brent, [it] is actually back at the highs."

Oil has rallied on concerns U.S. sanctions on Iran could hurt global supply. Brent crude surged 2.2 percent to $79.10. Longer term, Energy Exchange Traded Fund XLE has over the past two years experienced higher lows, holding near its 200-day moving average — or the average closing price over the last 200 days, a key indicator of long-term trends. Despite the gains, certain stocks within the energy sector haven't experienced much of a boost.

"I think lost in the discussion ... the last couple of weeks is Brent oil has gone 70 to 80 — before we even knew about the storm. This is not a storm story," Verrone said. "There is a bid to oil here. I think the stocks have separated from that. I think that's a mistake, and I think the market is going to start to reflect that."

Halliburton has dropped 23.6 percent year to date, to about $37 per share from about $48 at the end of December 2017, according to FactSet.

"Very quietly over the last several days, you reversed off the very important $35 level, you've held those levels. We think its not out of the question you can bounce back to the 200-day moving average, that's near $44, $45. Certainly a rally candidate there," he said.

EOG Resources has come back to its 200-day moving average, in the context of higher lows, like the XLE ETF.

Finally, Apache's 50-day moving average — or the average closing price over the last 50 days — recently crossed above its 200-day moving average. Verrone said that makes now a "decent entry point" for investors.

"Some of these beaten-down names, the service stocks, bottomed on a very big volume the last several days, Halliburton probably being the best example of that. There is a trade here to be had," Verrone said.

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