Below we highlight our trading range charts of four ETFs that track oil and gas stocks. The red area represents between one and two standard deviations above the ETF's 50-day moving average. When the price moves above the red zone, extreme overbought levels are reached, and the risk/reward trade-off shifts to the risk side. As shown in the charts below, the prices of these ETFs have turned parabolic in recent days as oil has shot to $120/barrel. For those that own and have gains in these ETFs, it would be greedy to not take some profits here.
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