Buying Energy dip
Technical Analysis / Trade Setup
There could be a trade coming up next week in energy.
The 50sma has worked as support 2 consecutive times, and could potentially do it again.
This level is also coincidental with the 50% Fibonacci retracement level & 2020 highs; which suggests this support level has more strength.
Backtesting Data
There is a very interesting discrepancy between stocks within the energy sector going on; where most stocks are above the 200sma, byt below their 10sma. --> From 1979 until today, there has only been 12 times where this has happened...
What did it mean going forward?
Energy was up 70% of the time looking a year later, with an average of 27%.
Fundamental Analysis
Bull case for energy:
Bear case for energy:
~ For the full article on sector view, send a message and I will be happy to share the resources I have. ~
There could be a trade coming up next week in energy.
The 50sma has worked as support 2 consecutive times, and could potentially do it again.
This level is also coincidental with the 50% Fibonacci retracement level & 2020 highs; which suggests this support level has more strength.
Backtesting Data
There is a very interesting discrepancy between stocks within the energy sector going on; where most stocks are above the 200sma, byt below their 10sma. --> From 1979 until today, there has only been 12 times where this has happened...
What did it mean going forward?
Energy was up 70% of the time looking a year later, with an average of 27%.
Fundamental Analysis
Bull case for energy:
- Oil is priced above the level at which the average company can cover expenses;
- Supply has declined with lower production and OPEC compliance;
- Large diversified energy companies have strong balance sheets and access to capital;
- The ongoing recovery of the global economy bodes well for returning oil demand
Bear case for energy:
- Oil demand is still down significantly.
- Valuations are opaque.
- There is weak long-term stock price momentum.
~ For the full article on sector view, send a message and I will be happy to share the resources I have. ~
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.