Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Gulf Stocks’ “Death Cross” Suggests Crude Slide Has Legs

Monday, October 31, 2016 1:26
% of readers think this story is Fact. Add your two cents.

After 7 straight days up, Middle East stocks sank overnight on the heels of dashed hopes of an oil ‘freeze/cut’ deal. The end of the dead cat bounce coincided with the formation of a “death cross” in Bloomberg’s GCC 200 index which did not end well for oil or stocks the last two times…

The 50-day moving average crossed below the 200-day moving-average triggering the classic technical pattern known as the ‘death cross’. As Bloomberg notes, the last time the double bearish signal occurred, in August 2015, the index of the largest and most liquid companies in the six-nation Gulf Cooperation Council sank the most since 2008 on a monthly basis.

Chart: Bloomberg

Gulf stocks fell for the first time in almost two weeks…

Chart: Bloomberg

Finally,  it appears oil prices have rallied over-optimistically, and with the failed talks coinciding with a ‘death cross’ we suspect oil will revert back – just as it did in July – to the equity market’s view of the outlook for the energy complex…

Chart: Bloomberg


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.