Recent trading swings now raise concerns about a potential market reversal across the energy sector.
Technical analysts identified a developing head-and-shoulders pattern, often linked to weakening upward trends.
The chart formation includes three peaks, with the middle peak standing above the two surrounding highs.
Analysts placed the pattern’s “head” near 976, while the shoulders formed around 883 and 914.
The energy index traded near 872 on Monday, increasing attention on critical support levels.
A decisive drop below 820 could trigger a broader decline toward 660, erasing this year’s gains.
A rally above 914, however, could revive bullish momentum and reopen the path toward record highs.
Major players like Exxon Mobil and Chevron continue shaping sector performance alongside broader equity trends.
