Whilst the main market closed broadly weak, there was powerful downside within the energy sector. Chesapeake Energy (CHK) and Transocean (RIG) settled lower by -1.6% and -4.2% respectively. Near term outlook is bearish, as WTIC looks vulnerable to the $40/37 zone.
Suffice to say, with WTIC having cooled from a May 25th high of $52.00 to the $42s, its no surprise to see the broader energy sector struggle.
The mid/small tier stocks like CHK and RIG are naturally seeing more powerful declines.
Short term, WTIC to $40/37 zone seems probable, which will no doubt knock another 5-10% off CHK and RIG.
Unlike early 2016 though, the long term survivability of CHK and RIG is not in any doubt.