Energy stocks, coming off their worst week of the year, could see a sharper drop, technician says

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After starting the year on a high note energy stocks are under pressure. Analysts Craig Johnson and Boris Schlossberg are leery about the sector.

After starting the year on a high note energy stocks have faltered this month, and two market watchers say there could be more downside for the sector.

"I think we're going to see energy sold, and that money is going to rotate into other areas where there's more momentum in the market," he said Friday on CNBC's "Trading Nation." He added that he would be"trimming positions in the XLE at this point in time." "What's interesting is we had the huge sell-off in Q4," he said."Energy's been a terrific performing sector year to date, but we're not really seeing the relative outperformance the way we'd seen back in 2015, 2016. So I look at this as really a relief rally."

 

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