Energy Stocks Set for Pullback
After being absolutely crushed during the 2nd half of 2014, thus far energy stocks are one of the best performing sectors in 2015. However, that may be about to change as a number of technical factors indicate that the 2015 energy stock rally may have just climaxed:
A weekly bearish engulfing candlestick on above average volume after failing to hold above the $83 resistance level for the 4th consecutive week isn’t exactly a bullish omen. Moreover, the weekly RSI(14) ran into previous support near the median line which is also likely to now become resistance.
Sentiment on crude oil itself has bounced back a bit from the extreme historic low levels we saw at the beginning of the year:
This modest improvement in sentiment also removes one of the key pieces to the bullish oil thesis which existed at the beginning of 2015.
Read Also: 4 Reasons to Expect a Pullback in Crude Oil