Tuesday, 27 October 2015

CHK, CNX, RIG - energy stocks under pressure

Whilst the broader market settled broadly lower, there was distinct significant weakness in the energy sector. Chesapeake (CHK), Consol (CNX), and Transocean (RIG), settled lower by -5.7%, -21.3%, and -2.2% respectively. Near/mid term outlook for the trio is outright bearish.

CHK, daily

CNX, daily

RIG, daily


Suffice to add, it was a rough trading day for most energy stocks, as energy prices continue to display rather strong deflationary pressures.

What remains of the coal mining sector remains hardest hit, with CNX having collapsed from $20 to the $6s in just 5 months.

*I have no position in any of the trio of horror. The energy sector still appears some way from capitulation.. and further companies look set to 'disappear' into 2016.