{"id":193243,"date":"2023-07-10T13:43:45","date_gmt":"2023-07-10T17:43:45","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=193243"},"modified":"2024-01-24T12:13:13","modified_gmt":"2024-01-24T17:13:13","slug":"chart-advisor-big-day-for-energy","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-big-day-for-energy\/","title":{"rendered":"Chart Advisor: Big Day for Energy"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-friday-7th-july-2023\">Friday, 7th July, 2023<\/h2>\n\n\n\n<p><strong>1\/ Big Day for Energy<\/strong><\/p>\n\n\n\n<p><strong>2\/ The Line in the Sand for the S&amp;P 500<\/strong><\/p>\n\n\n\n<p><strong>3\/ The Nifty 50 Posts New All-Time Highs<\/strong><\/p>\n\n\n\n<p><strong>4\/ Feeder Cattle Lose<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-big-day-for-energy\">1\/ <strong>Big Day for Energy<\/strong><\/h2>\n\n\n\n<p>Energy stocks are turning up the heat, sitting atop the leaderboard once again.<\/p>\n\n\n\n<p>In fact, energy names could represent the next market area to benefit from the healthy&nbsp;<a href=\"https:\/\/www.investopedia.com\/articles\/trading\/05\/020305.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">rotation<\/a>&nbsp;underway.&nbsp;<\/p>\n\n\n\n<p>The Oil Services ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=oih&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">OIH<\/a>) exemplifies our point with authority, gaining almost 7% in today\u2019s session:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/07\/1-4-1100x541.png\" alt=\"\" class=\"wp-image-193244 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/541;\" \/><\/figure>\n\n\n\n<p>It also completed a bearish-to-bullish reversal pattern as the 14-day&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/rsi.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">relative strength index (RSI)<\/a>&nbsp;confirmed the breakout with an&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/o\/overbought.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">overbought<\/a>&nbsp;reading above 70.<\/p>\n\n\n\n<p>It is possible that similar buying pressure could spill over into the remainder of the energy space in the coming weeks and months as last year\u2019s leadership group rotates back into the spotlight.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-the-line-in-the-sand-for-the-s-p-500\">2\/ <strong>The Line in the Sand for the S&amp;P 500<\/strong><\/h2>\n\n\n\n<p>The&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/s\/sp500.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">S&amp;P 500<\/a>&nbsp;is steadily grinding higher this year, up almost 15% year to date.<\/p>\n\n\n\n<p>Price recently reclaimed a critical polarity level, which represents the former highs from last summer. That\u2019s our line in the sand.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/07\/2-5-1100x601.png\" alt=\"\" class=\"wp-image-193245 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/601;\" \/><\/figure>\n\n\n\n<p>The evidence stacks in favor of the bulls as long as the S&amp;P 500 trades above the 4,300 area.&nbsp;<\/p>\n\n\n\n<p>On the flip side, a break below last year\u2019s August&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/p\/pivotpoint.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">pivot high<\/a>&nbsp;would suggest that bulls still have their work cut out for them. In this scenario, messy for longer likely describes the overall environment for stocks\u2014at least at the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/i\/index.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">index<\/a>&nbsp;level.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-the-nifty-50-posts-new-all-time-highs\">3\/ <strong>The Nifty 50 Posts New All-Time Highs<\/strong><\/h2>\n\n\n\n<p>Stocks worldwide have been moving steadily higher since the lows from last fall. However, more recently, some countries have slowed their ascent in the face of overhead supply.<\/p>\n\n\n\n<p>Apparently, the India Nifty 50 Index didn\u2019t get the memo, as it keeps pushing against new&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/record_high.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">all-time highs<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/07\/3-6-1100x771.png\" alt=\"\" class=\"wp-image-193246 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/771;\" \/><\/figure>\n\n\n\n<p>As you can see, after carving out a&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/b\/basing.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">base<\/a>&nbsp;for the past couple of years, buyers absorbed overhead supply, posting a decisive upside resolution.<\/p>\n\n\n\n<p>The fact that we continue to see this kind of behavior overseas speaks to a healthy risk appetite and supports a bullish outlook for&nbsp;<a href=\"https:\/\/www.investopedia.com\/articles\/investing\/032615\/how-trade-foreign-stocks.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">foreign equities<\/a>&nbsp;in the intermediate and long term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-feeder-cattle-lose\">4\/ <strong>Feeder Cattle Lose<\/strong><\/h2>\n\n\n\n<p>Livestock contracts remain the undisputed leaders across the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/commodity.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">commodity space<\/a>&nbsp;this year. But these unrelenting uptrends are showing signs of exhaustion.&nbsp;<\/p>\n\n\n\n<p>Check out the August contract for Feeder Cattle&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/f\/futurescontract.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">futures<\/a>:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/07\/4-7-1100x562.png\" alt=\"\" class=\"wp-image-193247 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/562;\" \/><\/figure>\n\n\n\n<p>The parabolic advance has screamed higher for over six months, challenging its former all-time highs earlier this week.<\/p>\n\n\n\n<p>We believe that those former highs mark a logical area of potential&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/resistance.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">resistance<\/a>. It also makes sense for feeder cattle to correct lower through price as a four-point bearish&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/d\/divergence.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9624887-20230707&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=070723\" target=\"_blank\" rel=\"noreferrer noopener\">divergence<\/a>&nbsp;on the 14-day RSI suggests waning momentum.<\/p>\n\n\n\n<p>After taking the escalator up, perhaps it\u2019s time for cattle to take the elevator down. If and when livestock drops, we will be monitoring commodities for a possible healthy rotation into energy and base metals.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 7th July 2023<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Energy stocks are turning up the heat, sitting atop the leaderboard once again.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,14,17,18,6,8,9,22,23,26,3],"tags":[15547,11715,3867,445,207],"contributors-categories":[13686],"class_list":{"0":"post-193243","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-commodities","7":"category-etfs","8":"category-futures","9":"category-macro","10":"category-north-america","11":"category-region","12":"category-securities","13":"category-stocks","14":"category-technical-analysis","15":"category-text-articles","16":"category-traders-insight","17":"tag-gfq3","18":"tag-nifty","19":"tag-oih","20":"tag-rsi","21":"tag-spx","22":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the 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