• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 1 hour WTI @ 67.50, charts show $62.50 next
  • 7 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 7 hours Mike Shellman's musings on "Cartoon of the Week"
  • 3 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 12 hours Venezuela set to raise gasoline prices to international levels.
  • 2 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 6 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 12 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 19 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 18 hours Corporations Are Buying More Renewables Than Ever
  • 8 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 23 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 9 hours France Will Close All Coal Fired Power Stations By 2021
Alt Text

Oil Prices Fall Despite Supply Fears

Oil prices started the day…

Alt Text

The Real Reason Behind The Next Oil Squeeze

An oil supply squeeze may…

Alt Text

Keystone XL Delayed…Again

The Keystone XL saga has…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Vigilance Needed To Determine Extent Of Recent Rally

While most investors were focused on the recent volatility in the equity markets and the weakness in the crude oil and natural gas markets, shrewd money managers were taking advantage of the low prices in the oil sector and buying undervalued stocks.

One ETF market that may have turned the corner at least in the short run is the S&P Energy Select (XLE). After reaching its lowest level since the week-ending June 28, 2013, it posted a strong rebound from last week’s low at $77.51. It is currently trading close to 10% higher at $86.28.

Based on its sell-off from $101.52 to $77.51, it could trade as high as $89.52 to $92.35 over the near-term. This zone represents a 50% to 62% retracement of its 2014 range.

We can’t know for certain if this rally by the energy sector ETF means that a bottom has been reached in the crude oil market, but we do know that investors haven’t given up on equity stocks for their portfolios. The buying spree is likely being fueled by value-seeking money managers. The size of the rally over the short-period of time also suggests aggressive short-covering is taking place.

Typically, a short-covering rally doesn’t last very long so investors should be careful about chasing this market higher. If you missed the rally then the best thing to do is wait for a retracement into more favorable price levels. Longer-term rallies usually take place after a solid support base has been formed. In the case…

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