The recent volatility in the oil sector has led to the Dow Jones U.S. Oil & Gas Index losing ~8% in November, thus prompting some investors to label the energy sector as cheap. Thing is, even when the energy stocks were rising owing to a rally in the oil prices earlier this year, some analysts and market observers were still labeling the sector inexpensive based on valuations.
Penalized severely by the recent oil rout, WTI futures touched their worst losing streak in nearly 34 years, while IYE -- and ETF that tracks the Dow Jones U.S. Oil & Gas Index -- suffered a year-to-date loss of ~7% and falling 15.68% below its 52-week high.
Several energy stocks trade at roughly a 50% discount to the broader market. Is the Energy sector a "buy" in these conditions?
The 10-day RSI Oscillator for IYE moved out of overbought territory on April 12, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 instances where the indicator moved out of the overbought zone. In of the 41 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
The Momentum Indicator moved below the 0 level on April 30, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on IYE as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for IYE turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
IYE moved above its 50-day moving average on May 02, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IYE advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
IYE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 287 cases where IYE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category Energy