Power lags in April. What merchants are watching in 2021’s prime sector
Energy has gone from first to worst.
Power shares sank Friday, ending April because the month’s worst-performing sector regardless of barely stronger-than-expected earnings from oil giants Exxon Mobil and Chevron. It’s nonetheless the top-performing sector for 2021, up almost 30%.
In an interview Friday with CNBC’s “Trading Nation,” Craig Johnson, senior technical analysis analyst at Piper Sandler, mentioned the group’s charts informed a constructive story.
“I believe the charts are telling us a really bullish message at this cut-off date,” Johnson mentioned, pointing to the Energy Select Sector SPDR Fund (XLE), which tracks the group.
He added that Exxon Mobil, the fund’s largest holding, was near reversing a longer-term downtrend.
“This can be a inventory that appears prefer it’s acquired extra room to run and a sector that appears fairly constructive,” he mentioned.
Nevertheless, many cash managers are inclined to disregard the sector as a result of it makes up solely about 3% of your complete marketplace for shares above a $25 million market cap, Johnson…