According to ValuEngine, one of the better analytics firms, oils and energy are the most undervalued sector right now. VE estimates that this sector is undervalued by about 32%.
Meanwhile, crude oil is in an uptrend. OPEC is looking at supply cuts, geopolitical tensions with Iran are heating up, and US crude oil inventory just posted another large supply draw. In other words, all the catalysts for this sector are pointing upward. The sector also looks bullish on its technical indicators, with MACD above signal line on both daily and weekly time scales. We've got some resistance ahead from the 200-day moving average, but we're above the 50-day after spending almost the whole month of June beneath it.
Meanwhile, crude oil is in an uptrend. OPEC is looking at supply cuts, geopolitical tensions with Iran are heating up, and US crude oil inventory just posted another large supply draw. In other words, all the catalysts for this sector are pointing upward. The sector also looks bullish on its technical indicators, with MACD above signal line on both daily and weekly time scales. We've got some resistance ahead from the 200-day moving average, but we're above the 50-day after spending almost the whole month of June beneath it.
