Southwestern Energy stock lost critical support
For the week ending February 2, 2018, Southwestern Energy (SWN) stock fell ~19.0% or from $5.00 to $4.05. Southwestern Energy stock decreased every day last week. Southwestern Energy stock gapped down ~1% on Monday and continued with the decline throughout the session. On Monday, Southwestern Energy lost the very critical support of $4.90 on the heavier than 30-day moving average—the same that arrested the September 2016 to October 2017 sell-off in Southwestern Energy’s stock prices. Interestingly, it’s also the same level that provided support to Southwestern Energy stock to stop the April 2014 to December 2015 decline.
As of February 2, Southwestern Energy’s 50-day and 200-day moving averages stand at $5.51 and $5.91, respectively. Southwestern Energy is trading at $4.05.
Natural gas on the decline
Last week, natural gas (DGAZ) prices were down. Natural gas prices decreased from $3.18 per MMBtu (million British thermal units) to $2.85 per MMBtu. As of February 2, natural gas’s 50-day and 200-day moving averages stand at $2.95 and $3.01, respectively. Natural gas is trading at $2.85 per MMBtu.
Due to lower natural gas (UNG) prices last week, the First Trust Natural gas ETF (FCG) decreased ~9.1 %. FCG underperformed the SPDR S&P 500 ETF (SPY) last week—SPY decreased ~3.9%. Southwestern Energy underperformed FCG.
In the next part, we’ll discuss Southwestern Energy’s correlation coefficient with natural gas prices.