Oil Supply Glut Beginning To Impact Share Prices of Energy Sector’s Market Leaders

Posted on Posted in Equities

The oil supply glut shows no signs of abating anytime soon and this feedback is being reflected in the price performance of the Select Sector SPDR Energy ETF (XLE). The downtrend in this sector has been relentless as market participants have consistently sold into the rallies.

 

energy-etf-dailly-xle-6-18-2015
Click to enlarge

 

Some investors and portfolio managers are obliged to maintain exposure to the group for either diversification or investment policy reasons. If they are astute, they typically allocate capital to the higher quality names. However, after taking a look underneath the hood of the XLE, it appears that the share prices of even some of its blue chip and more resilient companies are also coming under tremendous pressure as they violated support on significantly higher volume. Here are a few companies you may want to keep on your radar list for buying or selling purposes.

  • Baker Hughes (BHI) @ 62.31 (-2.35%) on 95% volume surge
  • Pioneer Natural Resources (PXD) @ 143.44 (-1.40%) on 52% volume surge
  • Ensco PLC (ESV) @ 22.44 (-5.16%) on 35% volume surge
  • Haliburton (HAL) @ 44.58 (-2.47%) on 30% volume surge

There was one positive exception to today’s above average volume within the energy sector.

  • Kinder Morgan (KMI) @ 40.08 (-+1.42%) on 60% volume surge

 

Leave a Reply

Your email address will not be published. Required fields are marked *