BP & Shell: Bye bye energy sector bulls?
Talk about a gravy train of just 'solid uptrend' in the past few years, wow energy stocks.
They have just been the best blue chip stock investment out there - technology often outdoes it in bursts but the volatility has been high in tech- energy has just gone up and up.
But that story appears to have reached THE END.
Looking at the shares of BP, they never reached the old highs from 2018 and are now rolling over quickly.
The 50% Fibonacci retracement level of the last leg up of the long-term rally was significant support, now that has broken - 360 GBP (the full 100% retracement) is the next possible target.
The 161.8% Fibonacci extension around 270 GBP is a worst case scenario.
It's actually impressive they've help up this well given the weakness in the price of oil - but these big oil companies are known as 'diversified' ie not all their earnings depend on oil prices going up, but ultimately - if the price of oil is going down - energy stocks normally do too.
Shell has been doing better - we don't want to be selling while the price is above this rising trendline.
However, if/when the trendling breaks, the trend in Shell would cooberate what we've already seen in BP - and add to our bearish bias in energy.
But that’s just what we think, do you agree or disagree?
Send us a message and let us know
Happy Trading!
Jasper, Contributor to SpreadEx and Founder of Trading Writers.
They have just been the best blue chip stock investment out there - technology often outdoes it in bursts but the volatility has been high in tech- energy has just gone up and up.
But that story appears to have reached THE END.
Looking at the shares of BP, they never reached the old highs from 2018 and are now rolling over quickly.
The 50% Fibonacci retracement level of the last leg up of the long-term rally was significant support, now that has broken - 360 GBP (the full 100% retracement) is the next possible target.
The 161.8% Fibonacci extension around 270 GBP is a worst case scenario.
It's actually impressive they've help up this well given the weakness in the price of oil - but these big oil companies are known as 'diversified' ie not all their earnings depend on oil prices going up, but ultimately - if the price of oil is going down - energy stocks normally do too.
Shell has been doing better - we don't want to be selling while the price is above this rising trendline.
However, if/when the trendling breaks, the trend in Shell would cooberate what we've already seen in BP - and add to our bearish bias in energy.
But that’s just what we think, do you agree or disagree?
Send us a message and let us know
Happy Trading!
Jasper, Contributor to SpreadEx and Founder of Trading Writers.
関連の投稿
免責事項
これらの情報および投稿は、TradingViewが提供または保証する金融、投資、取引、またはその他の種類のアドバイスや推奨を意図したものではなく、またそのようなものでもありません。詳しくは利用規約をご覧ください。