Freeport-McMoRan Inc (FCX) vs Chesapeake Energy Corporation (CHK): Technical Analysis
Freeport McMoRan Inc. (NYSE:FCX) and Chesapeake Energy Corporation (NYSE:CHK) are two of the biggest oil producers in the US. However, both these companies have lately been going through a tough time as the global oil industry continues to suffer. The international oil prices have plummeted by over 50% since June 2014, while it has been difficult for oil producers to report profits in their books. The international body consisting of major oil producing nations, the Organization of Petroleum Exporting Countries (OPEC), has lately been trying to manage supply, albeit a bit unsuccessfully.
The Country Caller discussed earlier today that Iraq has refused to reduce its oil production, a news that might signal a bearish outlook for international commodity prices. The Country Caller today inspects both these oil stocks from a technical analysis perspective, and tries to predict possible investor reaction.
Freeport McMoran shares seem to be in a Neutral state, while there is still a potential for the bulls to dominate. The 14-day RSI stands at a Neutral position, whereas indicators such as oscillators also hint at bull-friendly conditions. Neither of the two market participants seem to be more dominant, while the current bullish trend appears to be moderate. The oil stock is currently trading below its 50-day moving average.
Major price for Freeport’s stock today is $10.21, a break above which will lead to $10.37 and $10.66 levels respectively. Major support resides at $9.92, a break below which shall depress prices to $9.79, and $9.50 levels, respectively. The stock might trade in the negative territory today, due to an expected drop in commodity prices.
On the other hand, Chesapeake shares also seem to be in a neutral state, hinting at a possibility of bull dominance. The 14-day RSI, oscillators, and stochastic all show potential for the bulls. The current bullish trend seems to be weak, while neither of the market participants seem strong. The stock is currently trading above its 50-day moving average.
Major price level for Chesapeake stock today is $7, a break above which shall lead to $7.31 and $7.83 levels, respectively. Major support resides at $6.48, a break below which shall put prices back to $6.27 and $5.75 levels, respectively.