Energy Transfer Equity’s moving averages
Energy Transfer Equity (ETE) continues to trade above its short-term (50-day) and long-term (200-day) moving averages. It was trading 8.1% above its 50-day SMA (simple moving average) and 4.2% above its 200-day SMA as of June 14.
In comparison, its peers Williams Companies (WMB) and Western Gas Equity Partners (WGP) were trading 4.7% and 2.2%, respectively, below their 200-day moving averages. Plains GP Holdings (PAGP) was trading 14.5% above its long-term moving average.
A decline in crude oil prices, a possible increase in US Treasury yields following the Fed’s rate hike, and trade tensions could be negatives for the overall markets and for ETE in the near term.
Strong US drilling activity, new project announcements, and positive updates on Energy Transfer Partners’ major projects could push it above its 200-day SMA, resulting in a bullish sentiment.
Short interest in Energy Transfer Equity
Short interest in Energy Transfer Equity was 23.6 million shares as of June 14. Short interest in ETE as a percentage of float ratio was 3.2%. The current short interest in ETE is lower than the 30-day average of 3.5%. A decline in short interest despite an increase in its stock price indicates that the market expects ETE stock to rise more.
In the next part, we’ll look at Energy Transfer Equity’s seven-day price forecast based on its implied volatility.