• 3 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 5 minutes Could Tesla Buy GM?
  • 11 minutes Global Economy-Bad Days Are coming
  • 17 minutes Venezuela continues to sink in misery
  • 4 hours OPEC Cuts Deep to Save Cartel
  • 4 hours What will the future hold for nations dependent on high oil prices.
  • 1 day End of EV Subsidies?
  • 11 hours Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 6 hours Price Decline in Chinese Solar Panels
  • 8 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 12 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 21 hours Permian Suicide
  • 1 day GOODBYE FOREIGN OIL DEPENDENCE!!
  • 1 day Asian stocks down
  • 1 day Maersk's COO statment.
  • 1 day IT IS FINISHED. OPEC Victorious

There Is No Relief In Sight For Energy Investors

Oil

Energy investors are desperate for some good news. Even as the broader U.S. market has ignored geopolitical risk and political chaos to keep marching upwards, energy stocks have been quietly collapsing. I would love to tell you that that is about to change and that the sector represents a rare value in an overbought market, but neither technical nor fundamental analysis suggest that.

I have said many times before in these pages that technical analysis has its limits. An analysis of a chart can tell you a lot about what has happened, but using it to forecast what will happen is fraught with danger. There is no logical reason why, just because a market followed a pattern in the past, even on many occasions, it will do so in the future. That said, charts are one of traders’ few tools, and are useful for illustrating trends and identifying levels that others see as significant. They cannot be ignored, but it is important to understand their limitations.

Fundamental analysis also has its limits. Even on the rare occasions when the various factors that influence supply and demand all point in the same direction at the same time and can only be interpreted in one way there is no guarantee that the market will do the logical thing. The old trader’s saying that the market can remain illogical longer than you can remain solvent exists for a reason.

When an obvious technical analysis and an obvious fundamental analysis both suggest the same thing, you can…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News
-->