{"id":162993,"date":"2020-01-08T10:10:06","date_gmt":"2020-01-08T15:10:06","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=162993"},"modified":"2020-01-08T09:53:27","modified_gmt":"2020-01-08T14:53:27","slug":"is-the-energy-sector-setting-up-another-great-entry","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/is-the-energy-sector-setting-up-another-great-entry\/","title":{"rendered":"Is The Energy Sector Setting Up Another Great Entry?"},"content":{"rendered":"
January 8, 2020<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Another wild week for oil traders with missiles flying and huge overnight price swings in crude. As we recently pointed out within our current Oil research article<\/a><\/strong>, Oil and the Energy sector may be setting up for another great trade.\u00a0 We recently commented on how the supply\/demand situation for oil has changed over the past 20+ years.<\/p>\n

With US oil production near highs and a shift taking place toward electric and hybrid vehicles, the US and global demand for oil has fallen in recent years.\u00a0 By our estimates, the two biggest factors keeping oil prices below $75 ppb are the shift by consumers across the globe to move towards more energy-efficient vehicles and the massive new supply capabilities within the US.<\/p>\n

Our researchers believe the downside price rotation in Crude Oil early this week, after the US missile attack in Iraq, suggests that global traders are just not as fearful of a disruption in oil supply as a result of any new military actions in Iraq, Iraq or anywhere near the Middle East.\u00a0 If there was any real concern, then the price of Crude Oil would have spiked recently.<\/p>\n

We talk more about what we expect with oil both the bullish and bearish outlooks in this recently recorded conversation with HoweStreet<\/a><\/strong>.<\/p>\n

Inverse Energy ETF ERY Daily Chart<\/h3>\n

This leads us to believe the inverse Energy ETF, ERY, maybe setting up a very nice bottom in price below $40.\u00a0 Ultimately, we believe a deeper price bottom may set up in the next 10 days where ERY may trade below the $36~37 range, but time will tell if we are correct about this or not.<\/p>

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Historically, price levels below $40 have resulted in some very nice long trade setups in ERY.\u00a0 This ERY Daily chart highlights the Support Channel we believe exists in ERY and why we believe any entry-level below $36 is an outstanding entry point for any future upside price move.<\/p>\n

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Weekly ERY Chart<\/h3>\n

This Weekly ERY chart highlights the past rallies that have originated from within the Support Channel.\u00a0 Pay special attention to the size and scope of these moves.\u00a0 The October 2018 rally resulted in a 183% price rally.\u00a0 The April 2019 rally resulted in a 57% price rally.\u00a0 The July 2019 rally resulted in a 50% price rally and the last move in September 2019 resulted in a 41% price rally.<\/p>\n

Could this next setup in ERY be preparing for another 40% to 60%+ upside price rally?<\/p>\n

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We believe the setup in ERY is very close to generating an entry trigger.\u00a0 We have not issued any new trade triggers for our members-only service as we are waiting for confirmation of a potentially deeper price move in ERY.\u00a0 Right now, get ready for what may become a very good setup in ERY over the next few weeks.<\/p>\n

Watch what happens in the energy sector over the next 30 to 60 days.\u00a0 We may be setting up for a fairly large price rotation as the tensions spill over into the global markets and precious metals.\u00a0 We may find that Oil is the big loser over the next 60+ days.<\/p>\n

Profit during times when most others can\u2019t which is why you should join my\u00a0Wealth Trading Newsletter for index, metals, and energy trade alerts<\/strong>. Visit our website to learn how you can see what this research is telling us.<\/p>\n

SUBSCRIBE TO MY TRADE ALERTS AND\u00a0<\/a><\/strong>
\nGET YOUR FREE BULLION!<\/a><\/strong><\/p>\n

Chris Vermeulen
\nTheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

NOTICE : Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.\u00a0 It is provided for educational purposes only.\u00a0 Our research team produces these research articles to share information with our followers\/readers in an effort to try to keep you well informed.\u00a0 Visit our web site (www.thetechnicaltraders.com) to learn how to take advantage of our members-only research and trading signals.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Another wild week for oil traders with missiles flying and huge overnight price swings in crude. As we recently pointed out within our current Oil research article, Oil and the Energy sector may be setting up for another great trade.\u00a0 We recently commented on how the supply\/demand situation for oil has changed over […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-162993","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=162993"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162993\/revisions"}],"predecessor-version":[{"id":162996,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162993\/revisions\/162996"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=162993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=162993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=162993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}