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A Look at Energy Transfer Equity’s Technical Indicators

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Energy Transfer Equity’s moving averages

Energy Transfer Equity (ETE) recently moved above its short-term 50-day moving average, which could indicate bullish sentiment in the stock. ETE was trading 3.0% above its 50-day SMA and 6.0% below its 200-day SMA, respectively, on April 20.

Among ETE’s peers, Western Gas Equity Partners (WGP) and Williams Companies (WMB) are trading 9.8% and 11.8% below their respective 200-day moving averages. Plains GP Holdings (PAGP) was trading 13.8% above its long-term moving average.

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A downward revision of its target price, a rise in US Treasury yields, negative updates on Energy Transfer Partners’ (ETP) major projects, and expected dilution at Energy Transfer Partners following the recent preference share issuance could prevent the GP from crossing its 200-day SMA. On the other hand, positive earnings surprises and further gains in crude oil prices could propel the GP above its long-term moving average, resulting in bullish sentiment in the stock.

Short interest in Energy Transfer Equity

Short interest in Energy Transfer Equity (ETE) was 31.0 million shares on April 20. On the same date, short interest in ETE as a percentage of the float ratio was ~4.0%. The current short interest in ETE is higher than the 30-day average of ~3.7%. 

A rise in short interest reflects an increase in short positions that haven’t been closed. An increase in short interest with an increase in the stock price could indicate that the market expects ETE’s stock price to decline. This trend could indicate a bearish sentiment in the stock. However, short interest in ETE is still lower compared to the one-year and three-year averages of ~6.1% and 5.8%, respectively.

In the next article, we’ll look into Energy Transfer Equity’s seven-day price forecast based on its implied volatility.

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