iShares S&P/TSX Capped Energy Index ETF IUNSF

Another short opportunity

[dragshot]

is setting up.  My technical indicators continue to be weak.  Look for entry point just below $14.50.  Sorry longs.

[EdPaquette]

Looking at the chart, it looks like oil is going up in the next week.  https://ca.investing.com/charts/futures-charts

[dragshot]

What indicators are you using?  Moving averages, etc? 

[EdPaquette]

Looking at a 6 month oil chart and finding the low points, notice how each low is higher than the previous one. Also the number of producing wells has diverged  from the oil prices. Esg investors have starved oil companies of working capital. Shanghai will open soon adding 5 dollars to the oil prices. 

[Schussing56]

Keep in mind though, XEG is made up of Canadian oil producing companies so, they are affected by other factors, not just the price of oil. For example, the cost of oil related services has gone up significantly as well. Bart Melek, Chief commodities analyst for TD, says, in regard to oil, normally, when a cycle has peaked, you see a lot of traders shorting the market but, we're not seeing that

[EdPaquette]

Well dragshot, xeg went up 3.24% in the first few minutes of trading.  Be careful. 

[dragshot]

My strike point just below $14.50 hasn't been triggered yet.  There's still plenty of time plus indicators can change direction quickly.  Right now I'm still bearish.  Well see though. 

[dragshot]

Well Ed?   

[EdPaquette]

We have to be ready for big swings. I've seen predictions of oil at 70 or 380. I'm long here.

[dragshot]

Good luck.  It may be a bit of a wait for you.  But it will happen.  Meanwhile I'm short on O&G. .