Energy Stocks Dropping Fast in August

While most stocks have been riding a bull market higher this year, the energy sector has been moving lower, but the drop has accelerated since August 1, as demonstrated by the drop in ERX, a leveraged 3x ETF directly tied to energy stocks like Exxon, Chevron, and ConocoPhillips. ERX closed today at $21.57, about half what it was on January 1 and 22% below the price on August 1.

As shown in the chart below, ERX just hit its’ bottom support level and is now well below the bottom Bollinger Band, so from a purely technical perspective, it seems likely to bounce soon, but other factors might be preventing that.

Click to see larger chart.

The lines in this chart show the moving averages, green is 200-day, yellow is 100-day, purple is 5-day, and pink is 10-day.

James Bailey

Author: James Bailey

James Bailey is an author, business owner, husband and father of two children. His vision is to broadcast the good news of Jesus Christ through blog sites and other media outlets.

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Deena
Deena
Member
August 21, 2017 10:40 PM

On Trunews site. Dems approved 120 thousand write off…wasn’t that one of your numbers to watch for ?

Christian Block
Christian Block
Member
August 17, 2017 6:42 PM

John Paul Jackson stated that there would be a glut of oil prior to an Israel war which would cause the price of oil to skyrocket. He also said there would be an increase in bombings immediately before which we have not yet seen. The Temple Mount situation seems to have inflamed the situation in Israel, even if things have temporarily settled down. Keep an eye out for bombings in Israel. Also, the month of Elul is a candidate for an Israeli war based on an astronomical theory. May be correct, may not be.

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