U.S. Oil And Gas E & P Fund: Downside Breakout Expected

Published 06/28/2013, 02:09 AM
Updated 07/09/2023, 06:32 AM

From a technical view, the iShares Dow Jones U.S. Oil & Gas ETF (IEO) is still supported by a key rising trend line but a downside breakout is expected. Indeed, the daily RSI is capped by a bearish trend line which maintains downward momentum in the short term and the 20-day moving average is reversing down.

Furthermore, the daily MACD is pushing below its signal line and the bearish gap opened on June 20th provides another bearish argument. On a relative basis against the IVV, S&P500, the iShares Dow Jones U.S. Oil & Gas Exploration & Production Index is capped by a bearish trend line and looks set for a drop.

Trading strategy: Short Sell @ $72.34 - Stop loss @ $75 - Target @ $65
Dow Jones

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