Natural gas has been under pressure for quite some time. As a whole, the energy sector has been beaten down severely and is historically cheap. I do not believe this will last. We can certainly have another big drop and even take out March lows but I wouldn't count on it. There are some BIG BIG BIG changes heading our way and we will look back on these days and regret not paying closer attention to energy.. Look at what's cheap.. look at what's expensive.
BTW, we're at a critical junction here. There's a 3x hidden bear divergence that has been respected on weekly timeframe. I think this could push price lower. I sure hope so. But big picture is wildly explosive.
here's a chart on XLE to XLK (energy compared to tech). What do you think is the better deal?
BTW, we're at a critical junction here. There's a 3x hidden bear divergence that has been respected on weekly timeframe. I think this could push price lower. I sure hope so. But big picture is wildly explosive.
here's a chart on XLE to XLK (energy compared to tech). What do you think is the better deal?
Comment:
price breaking the trend, stoch/rsi is still a factor to consider
Comment:
the breakout is still bullish but the rsi should push price to correct or at the very least, consolidate for a while. I was hoping for a lower low in natural gas but it's certainly possible that the July low was the low for the cycle. I'm holding some energy companies and will be nibbling on xle if we can continue dropping