Bearish Outlook on Energy


The technical moves in energy today can make an additional case that energy is in a bearish state.

First. let’s look at the energy ETF, XLE.  This past Friday, it broke through a support level, and broke a trendline.  Due to the late day rally in the equity markets, it closed positive, thus forming a whipsaw.  Today, it closed below the support level & the trendline.

To top that off, spot crude oil also broke through a technical level, a trendline.  Pending confirmation tomorrow, the next area where it will meet some sort of support is at $67.

We have to wait till tomorrow to get confirmation for both of this move & verify it is not an other whipsaw. As of now, I am bearish.  For those of us who cannot short either, you can play this move with the short crude ETF, DUG.

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About Clair Wyant

I am a foreign exchange & stock/ETF trader in Boston, MA. This blog will be dedicated to my out look in the economy, the financial markets, with an emphasis in foreign exchange. When I am not working, I enjoy watching sports, participating in recreational sports leagues, travel & spend good times with my friends.
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