Recently, Energy Transfer (ET) stock continued to trade weak. So far, the stock has lost almost 20% in 2018. The energy sector (XLE) has fallen ~16% YTD (year-to-date), which mirrors crude oil prices. Broader markets have been marginally down during the same period. Energy Transfer’s chart indicators continue to paint a grim picture. The company is trading at $13.85, which is ~12% and 16% below its 50-day and 200-day moving average levels. The large discount to both of these levels highlights weakness in the stock. The moving average levels close to $15.6 and $16.5 will likely act as a resistance for Energy Transfer stock going forward.
In Energy Transfer Stock: Is More Weakness Coming?, we highlighted the “death cross” pattern, which indicates an impending weakness in Energy Transfer stock. Since then, Energy Transfer has fallen 4%.
Relative strength index
Energy Transfer stock is trading at an RSI (relative strength index) of 32. RSI levels below 30 and above 70 could imply an upcoming reversal in the stock’s direction.
Recently, Energy Transfer stock witnessed an increase in its implied volatility levels. On December 10, the implied volatility in Energy Transfer was 36%—higher than its 15-day average implied volatility. In comparison, the S&P 500 experienced volatility of close to 20%. The implied volatility represents investors’ unease. Rising volatility is usually related to falling stock prices.
Energy Transfer stock is trading more than 28.0% lower than its 52-week high of $19.34 in January. The stock has risen 8.0% since its 52-week low of $12.80 in March.