Oil Services Set to Slide?
The energy sector has been causing us fits lately. We're bullish on the group in the longer-term timeframe due to internally oversold conditions created within the broader energy sector. But in the short term, we continue to see pressure on oil prices as weakness in the equities market and concerns over economic growth spills into the crude oil markets. If the equity market continues to weaken and keeps pressure on the energy market, we could see a final push to the downside by the weakest elements of the energy sector.
In our opinion the oil services companies qualify as one of the weakest elements of the energy sector along with the natural gas related stocks. Traders who are looking to ride the bearish momentum in the energy sector should remain concentrated in the natural gas and oil services stocks. We believe there is some downside coming in these names, but recognize that the group is already oversold and potential for a counter trend "snap back" rally is high once the broader market reaches an oversold condition....341 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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