the place the commodity and vitality shares head subsequent
What a distinction a month makes.
West Texas Intermediate crude oil rallied almost 90% in Could, its finest month ever. It was a bounce again from April losses.
“Once I have a look at the crude oil value, I might say once you have a look at that chart, we’re coming proper up into the downtrend resistance line and an in depth above about $33 and alter leaves the following resistance at $42,” stated Craig Johnson, chief market technician at Piper Sandler, on CNBC’s “Trading Nation” on Friday.
Crude oil closed above $35 on Friday afternoon. Resistance at $42 implies additional upside of 20%.
Power shares, nevertheless, aren’t maintaining with these positive factors. The XLE energy ETF climbed simply 2% in Could in what Johnson calls a “disconnect” between provide and demand. He does see potential for positive factors within the group, although.
“There was a priority of chapter for lots of those smaller [exploration and production] producers on the market that seems to be type of coming off the desk to a level, and actually lifting these particular person equities….