Can Energy Transfer Equity Recover from Last Week’s Fall?
Energy Transfer Equity’s moving average
Energy Transfer Equity (ETE) fell below its 50-day SMA (simple moving average), driven by last week’s fall. It’s currently trading 2.9% below its 50-day SMA and 5.1% above its 200-day SMA. That might indicate a bearish sentiment.
When a stock’s price exceeds a particular moving average, it’s a bullish sign, and vice versa. When a stock’s shorter moving average crosses over its longer moving average, it’s considered a “buy” signal for the stock.
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Energy Transfer Equity’s implied volatility
Energy Transfer Equity’s 30-day implied volatility of 35.8% is higher than the sector average of 15.9%. That difference could be due to the recent volatility in crude oil prices. ETE subsidiaries Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) have high crude oil exposure through natural gas midstream and commodity acquisitions and marketing businesses. ETE stock might stay volatile for some time, given the current uncertainty in crude oil prices.
Based on the closing price of $18.40 on April 13, 2017, and assuming a normal distribution of prices, Energy Transfer Equity stock may trade in the range of $17.49–$19.31 this week ending April 21, 2017. The price-range calculation in the above graph uses one standard deviation, which means that the stock price is expected to be within this range 68.0% of the time.