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Energy Stocks Could Enter Bear Market

Alan Farley

The WTI crude oil futures contract fell more than 5% before bouncing into Wednesday afternoon's North American session, posting the biggest one-day decline in 13 months. The reversal has unfolded at long-term Fibonacci and pattern resistance, possibly signaling a multi-year top. Major energy funds have diverged from the futures contract in recent months, stalling at 2016 resistance in January 2018 and dropping into sideways patterns while international trade tensions put a damper on buying interest.