Don't Ignore This Chart!

Weakening Dollar Providing Short-Term Opportunity In Oil

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

FMC Technologies (FTI) provides technology solutions for the energy sector.  Much of the energy space has struggled for the last several months for a number of reasons, one of which has been the higher dollar.  The rising greenback has provided a headwind for energy companies, but with the suddenly weak jobs report on Friday, the U.S. dollar has continued to correct.  FTI seems to be in a solid technical position for a bounce as it's challenging multi-year price support after a rapid decline at a time when a long-term positive divergence has formed on its weekly chart.  Check it out:

Note also that during 2015, the three highest weekly volume bars accompanied higher price action - a positive technical development as well.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More