Wednesday, 14 June 2017

CHK, RIG - energy stocks whacked with oil

With WTIC oil seeing very significant weakness to the $44s, there was natural powerful downside in some of the mid/smaller tier energy stocks. Chesapeake Energy (CHK) and Transocean (RIG) settled lower by -4.9% and -5.1% respectively. Near term outlook is bearish, as WTIC looks highly vulnerable to $40/37.

CHK, daily

RIG, daily


CHK: a reversal of the Mon/Tuesday gains. Near term outlook is weak. There really isn't much support until the $4.25/4.00 zone.

RIG: like CHK, also fully negating the Mon/Tuesday gains. Near term outlook is very bearish. The Feb'2016 low of $7.66 is just about within range.. not least if WTIC $40/37.

To be clear, unlike early 2016, neither companies 'survivability' looks in any doubt. For the moment though, the broader energy sector remains deeply unloved, and for the near term (at least).. there is zero sign of that ending.