Livewire has acquired Market Index, the country’s leader in free stock market data.
Find out why.

TECHNICALS – TREND CHANGE IN OIL STOCKS HAS COMMENCED

Angela Mangan

QMG Pty Ltd

Select key oil stocks have generated technical sell signals over the last week. Given this has occurred in a cluster flags the energy sector as having reached a (negative) turning point and indicates a trend change is underway. The oil price has not (yet) generated a technical sell signal, but commonly the stock technicals lead the related commodity. Looking back to early February a significant number of technical buy signals had been generated in both the energy and resources sectors - subsequently resulting in 9 completed technical stock trades i.e. the nominated technical buy signal targets were reached. It was “the cluster of stock technical signals” that identified the turnaround in these sectors early in the upswing. A strong rally subsequently occurred. Technical buy signals were also generated by iron ore (in late January) and by Brent crude in February with gains of 40% and 18% respectively, subsequently occurring. The “cluster of stock signals” in a sector/s has been effective previously in identifying sector turning points.


Angela Mangan
Angela Mangan
Technical Analyst
QMG Pty Ltd

Angela has over 30 years experience in the technical analysis field. She provides technical analysis coverage of major Australian and global stocks / key markets, including provision of a bespoke technical service to wholesale clients.

Expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.