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Energy may be next stock-market sector lifted by the ‘Trump trade’

As goes crude, so goes the energy sector.

The violent rotation out of bonds and defensive stock-market sectors is fueling a rally in cyclical stocks, with financials reaping the lion’s share of the gains and fund inflows.

Energy shares haven’t fared badly, but some analysts think the sector could soon be poised to play catch-up based on technical and fundamental factors.

‘Pre-breakout’ candidate?

Analysts at Oppenheimer offered the group of charts below in a weekend note. It’s encouraging, they said, for oil and energy bulls to see the U.S. crude benchmark CLF7, +1.47% bucking its inverse relationship with the ICE U.S. dollar index DXY, -0.03% Oil futures shook off the dollar’s rise to a 13-year high to post gains of their own late last week and extended gains sharply on Monday as expectations rose for a deal by large oil-producing nations to curb output.

They argued that a bullish reversal in the sector’s long-term...