Energy ETF a Strong Buy on Pullback

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PowerShares Dynamic Energy Sector ETF (NYSE: PXI ) - This exchange-traded fund (ETF) seeks to provide results that are comparable to the Dynamic Energy Sector Index. It invests over 80% of its assets in stocks of energy companies, and for more than nine months, it led a long list of other energy ETFs. Its holdings include companies that are engaged in the production and distribution of energy products. This includes oil services, pipeline, and solar, wind, and other non-oil-based energy companies.

Since August, the price of PXI has run from $28 to over $40, and if energy prices continue to move higher, it is likely that PXI will follow along.

Technically, PXI is in a powerful bull market. Note the recent pick-up in volume. But the turmoil in the Middle East may drive this ETF to $38 or lower where it is a strong buy.

Trade of the Day - PXI Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: ETF , PXI

Sam Collins

Sam Collins

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