The next few months could be tough for energy stocks.
With OPEC+ postponing negotiations indefinitely on Monday after failing to strike a deal on oil production, oil prices are already under pressure, falling more than 2% on Tuesday after grazing six-year highs.
Another macroeconomic force could “suggest there’s some vulnerability in terms of the near-term trading,” Ari Wald, Oppenheimer’s head of technical analysis, told CNBC’s “Trading Nation” on Tuesday.
“Specifically, we’re watching the U.S. dollar,” said Wald, whose firm is market-weighted in the energy sector.
The dollar wasn’t nearly as strong when the energy sector peaked in early June, he noted.
“This dollar strength has moderated…