Energy
Are Oil and Gas ETFs Staging Serious Chart Breakouts?
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If you went through 2015 and the first six weeks of 2016, the weakness in the oil and gas sector was something most investors have not seen in years. Now oil is back over $30.00 and nearing $35.00, and the charts in some of the key oil and gas stocks and their exchange trafed funds (ETFs) seem to be reaching breakout levels. The oil and gas industry, and the investment community around energy, has been dealing all day with news of the death of Aubrey McClendon. It seems that something else may be happening here on the charts.
Before investors think of the term breaking-out on a chart means a return to old highs, let’s not all get too excited just yet. The oil patch likely still faces a lot of pressure ahead. Many oil companies just simply are not profitable — even after a big bounce. Many more oil and gas workers are either going to be laid off or they are going to end up with pay cuts or see other serious changes.
24/7 Wall St. wanted to focus on the key ETFs with charts breaking out. Again, these are not charts signaling that a return to highs is coming any time soon. They are just charts with breakout patterns that have a lot of room up to the next perceived resistance level.
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