Analysis: CHPT XLE

With earnings from an Action Alerts PLUS holding coming up later in the week and some potentially bullish OPEC news for crude oil on the horizon, we'll make a couple of trades here.

ChargePoint (CHPT)  is set to report its latest quarterly results Thursday after the bell. The stock has been selling down of late, which tells us the market is nervous about the report. We are not, however, and following a strong report in August we see this pullback as a nice buying opportunity.

The CHPT chart is setting up nicely here with support around $11 down to $10.75. Indicators are falling as one might suspect, but volume trends are not too bearish. We know this stock can be volatile, hence we have taken profits when the stock rises up.

We'll have a chart out later zooming in on ChargePoint from a technical stance.

Meanwhile, Energy Select Sector SPDR Fund (XLE) is an interesting name here, with plenty of news to come in the next week or so that might drive crude and gas prices higher. The ETF is near all-time highs and remains well bid through the holidays, though crude oil yesterday hit the lowest levels of the year (WTIC). Even if demand for energy slows down in China, supply issues are going be a problem for the rest of the world, and that eventually means higher prices at the pump and home heating.

After you receive this Alert, we will make the following trades:

-- Buy 1,150 shares of CHPT at or near $11.50 per share. Following the trade, CHPT will account for roughly 3.25% of the portfolio.

-- Buy 110 shares of XLE at or near $90.50. Following the trade, XLE will account for roughly 2.5% of the portfolio.

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)