uploads///Chinese integrated

Chinese Energy Companies Trade below Moving Averages


Jan. 27 2016, Updated 10:07 a.m. ET

Moving averages

Chinese energy companies CNOOC (CEO), China Petroleum & Chemical Corporation (SNP), and PetroChina (PTR) have fallen below their 100-day and 20-day moving averages by an average of 2.2% and 6%, respectively. CEO, SNP, and PTR are trading 2.7%, 2%, and 1.9%, respectively, below their 100-day moving averages.

After touching a high of $175 in April 2015, CEO has been in a falling trend. Since June 2015, CEO has struggled to cross its 100-day moving average.

The energy sector benchmark, the Energy Select Sector SPDR Fund (XLE), is trading 16.6% below its 100-day moving average and 6.5% below its 20-day moving average. The United States Oil Fund (USO) is trading 34.5% below its 100-day moving average and 13% below its 20-day moving average.

Moving averages are lagging indicators used to confirm an existing trend. When an underlying asset’s price is above its long- and short-term averages, this indicates a rising trend, and vice versa. Moving averages provide important support and resistance levels for an underlying asset’s movement.

Article continues below advertisement

Analysts’ estimates

Wall Street estimates suggest that China-based integrated energy companies may rise by an average of 175% over the next 12 months, as compared to 17.3% for their US peers. These estimates indicate rises of 218%, 134%, and 173%, respectively, from current prices for CNOOC, China Petroleum & Chemical Corporation, and PetroChina. The graph above shows the moving averages and analysts’ estimates for these Chinese energy companies.

In the next part of this series, we’ll discuss the moving averages and analysts’ estimates of renewable energy companies.


More From Market Realist

  • Angels and Tomboys creators Mallory Iyana and Madison Star
    'Shark Tank' Angels and Tomboys—e-Commerce to Brick-and-Mortar
  • David and Joanna Parker of Yumble
    Meal Subscription Service Yumble Didn’t Tumble After ‘Shark Tank’
  • People looking at data on a laptop
    Best Penny Stocks for Investors to Buy Below $5
  • Amish men and children in a buggy
    Yes, Amish and Mennonite Communities Pay Taxes — Here's How
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.