Dear Readers, while the markets seemed to go on and on higher without pausing to catch its breath, a correction looks imminent for the energy sector as topish signals are showing on charts of the Russell 1000 energy index and energy leader Exxon Mobil Corp (XOM). All news seemed rosy now but do remember that the market is a forward looking indicator and we should take note of these clues which Mr Market is dishing out. If you are long on the energy sector, it would be wise to go into cash to see how the markets react. One can always buy back the shares if it really does go higher but losses are harder to make back.
Russell 1000 Energy index
Exxon Mobi Corp (XOM) - A break of the double top would break the bearish spell.
Finally, a look at Transocean (RIG). Its chart is already exhibiting weakness with a head and shoulder reversal top formation already formed.
Go into cash position.
Russell 1000 Energy index
Exxon Mobi Corp (XOM) - A break of the double top would break the bearish spell.
Finally, a look at Transocean (RIG). Its chart is already exhibiting weakness with a head and shoulder reversal top formation already formed.
Go into cash position.
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