WYCKOFF SMI – PROTRADERS SPECIAL REPORT

Energy Leadership: Oil Stocks Continue to Confirm Wyckoff Accumulation February 28, 2026 Over the past several months we have repeatedly highlighted the developing Wyckoff accumulation structure within the energy complex, and the results have been exceptional. While much of the market’s attention has remained focused on technology and AI themes, energy stocks quietly completed large base structures and have now emerged as one of the strongest performing leadership groups in the market. Our positioning across XLE, NBR, LNT, and ENB has been built methodically during the base-building phases. These positions were initiated as supply was being absorbed inside multi-month trading ranges and confirmed as price began to jump the creek and trend higher with expanding demand. The result has been a strong trend across the group, validating the Wyckoff principle that the best advances often begin when institutional accumulation completes and the market’s attention is still elsewhere.

Market Context: Energy Rotation Strengthens One of the most important developments in recent weeks has been the rotational shift toward energy and infrastructure-related equities. While broader equity indices have moved largely sideways, energy stocks have begun to demonstrate clear relative strength versus the market. This type of rotation is typical when institutions identify sectors where: • Supply has been thoroughly absorbed • Valuations remain attractive • Technical structures support sustained markup phases The energy sector currently checks all three of those boxes.

XLE – Sector Leadership Confirmed The Energy Select Sector SPDR (XLE) has completed a classic Wyckoff accumulation structure that formed over much of the past year. During the base-building phase, price oscillated between resistance near the previous buying climax area and support created during the automatic reactions. Several secondary tests confirmed that selling pressure had diminished, allowing demand to gradually take control of the structure. Once resistance was absorbed, XLE produced a decisive breakout accompanied by expanding volume and improved price spread, signaling that institutional demand was entering the market. Since that breakout, price has advanced steadily, confirming the transition from accumulation into the markup phase. The continued ability of XLE to hold above former resistance suggests that the sector may still be in the early stages of a larger trend move.

NBR – Classic Wyckoff Trend Progression Nabors Industries (NBR) has delivered one of the most textbook Wyckoff progressions within the group. Following a prolonged accumulation range, the stock produced a series of jump events and backup opportunities that allowed investors to progressively build positions as the markup phase unfolded. The advance has developed inside a well-defined upward trend channel, with each pullback representing controlled tests of supply rather than signs of distribution. The presence of repeated Backup (BU) structures after breakouts has provided multiple opportunities to add exposure during the trend. This type of orderly markup behavior often signals that institutional sponsorship remains active and committed.

LNT – Utility Infrastructure Strength Alliant Energy (LNT) represents a different component of the energy ecosystem—regulated infrastructure and utilities—yet it has exhibited similar constructive technical behavior. After forming a broad base structure, LNT successfully jumped resistance and has since maintained a steady markup trend. The recent breakout to new highs reflects continued demand entering the stock, reinforcing the theme that capital is rotating into energy-related businesses across multiple subsectors. Unlike many high-volatility growth stocks, LNT’s trend has been more measured and controlled, making it particularly attractive for investors seeking stable participation in the sector’s leadership.

ENB – Institutional Trend Acceleration Enbridge (ENB) has been another strong performer within our energy portfolio. The stock completed a significant base formation and has since transitioned into a powerful markup phase characterized by successive breakout structures and constructive pullbacks. The most recent advance has pushed price to new highs, confirming continued institutional sponsorship. Volume expansion during breakout phases suggests that large buyers remain active in the stock. As long as price continues to hold above prior resistance levels that now act as support, the broader uptrend remains intact.

Rotational & Thematic Notes Energy’s outperformance is part of a broader market rotation narrative currently unfolding beneath the surface of the major indices. While many investors remain concentrated in technology-driven themes, institutional capital has quietly been rotating toward: • Energy production • Energy infrastructure • Utilities tied to power demand • Industrial suppliers connected to resource development This shift often occurs when commodity-linked industries enter early markup phases while the broader market consolidates. If this rotational trend continues, energy equities could remain a source of relative strength during the coming months.

Forward Outlook The key question now is not whether energy has begun to outperform—the charts clearly confirm that it has—but rather how much of the markup phase remains ahead. Historically, when Wyckoff accumulation structures of this size resolve to the upside, the resulting trends can persist for extended periods as institutions gradually expand positions. For now, our approach remains consistent with the principles that guided the original entries: • Allow the trend to continue working • Monitor pullbacks for constructive tests of supply • Maintain exposure while leadership characteristics remain intact Energy has emerged as one of the clearest leadership groups in the current market environment, and the price action across our positions continues to validate the accumulation thesis we outlined months ago.

WyckoffSMI Disclosure Wyckoff Stock Market Institute and affiliated entities may hold positions in securities discussed in this report, including but not limited to XLE, NBR, LNT, and ENB. This material is provided for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. All investing involves risk, including the potential loss of capital.