Energy Stocks Could Enter Bear Market

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. If so, a slow and tortuous trip into the $50s for WTI is now possible, with newly optimistic energy bulls set to relinquish the majority of 2018 gains. 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.