3 Energy Stocks You Should Sell Now

Energy stocks are reeling following last week's oil crash and a bottom may not be in yet

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Energy stocks are limping into the new week as the weakest sector on Wall Street. While the recent oil plunge hasn’t helped matters, the bearish behavior began months ago. In mid-December, the Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) peaked at $78.45 and has since fallen 11%. We’re officially in correction territory.

3 Energy Stocks You Should Sell Now: BHI RIG and APA
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The downside reversal has been sufficient in carrying XLE beneath its 20-day, 50-day and 200-day moving averages. With resistance aplenty now heaped overhead, rallies should be viewed with skepticism — like last week’s, for example. Energy stocks were caught up in the post-Federal-Reserve-meeting euphoria with everything else. The optimism was good for a 3% pop in XLE that quickly fizzled.

With a new downswing upon us, now is as good a time as any to scan the space for low-risk bearish setups. Having already done the exercise, I can tell you — the sector is riddled with downtrends that are in the process of testing resistance.

Consider these three picks one banana peel away from another plunge into the abyss.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/03/energy-stocks-sell-bhi-rig-apa/.

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