Diamondback Energy Inc. (NASDAQ:FANG) and Viper Energy Inc. (NASDAQ:VNOM) are heading into fourth-quarter earnings under heavy bearish pressure, but their technical setups reveal contrasting signals for investors.

FANG Stock Stuck In Reverse

Diamondback Energy stock has slumped 12.09% over the past year and is down 6.65% year-to-date. The stock sits below its five-, 20- and 50-day exponential moving averages (EMAs), signaling a strongly bearish trend.

Chart created using Benzinga Pro

Diamondback Energy stock's eight-day simple moving average (SMA) of $157.44, 20-day SMA of $162.17 and 50-day SMA of $165.17 all flash bearish signals, as the stock trades beneath each level. Even the 200-day SMA of $183.45 reinforces this downside outlook.

The Moving Average Convergence Divergence (MACD) indicator sits at a negative 3.42, further supporting the bearish case. Meanwhile, the Relative Strength Index (RSI) at 37.44 suggests the stock is nearing oversold territory but not yet primed for a rebound.

Read Also: EQT, Viper Energy Shares Decline Amid Gas Price Volatility And Capital Discipline Focus

VNOM Stock: Bearish Short Term, Bullish Underneath

Viper Energy stock tells a slightly different story. While the stock is down 4.41% year to date, it’s still up 33.45% over the past year, reflecting stronger relative performance.

Chart created using Benzinga Pro

Viper Energy stock at $47.74 sits below its eight-day SMA of $49.57, 20-day SMA of $48.85 and 50-day SMA of $49.36 — all bearish signals similar to the stock’s signals.

However, Viper Energy's 200-day SMA of $46.11 offers a bullish signal, as the current price trades above this long-term support. The MACD indicator at a negative 0.05 further supports the short-term bearish signals, while the RSI at 41.11 and declining suggests the stock is approaching oversold conditions without being extreme.

Investor Takeaway

Both Diamondback Energy and Viper Energy face short-term bearish pressure, but Viper Energy's strength above its 200-day SMA and positive MACD hint at a potential rebound. Diamondback Energy, on the other hand, lacks similar support and remains firmly in bearish territory.

As earnings approach, investors may find Viper Energy the comparatively stronger play — unless Diamondback Energy delivers an earnings surprise that flips the script.

Read Next:

• Streaming Stock’s Revenues Quadrupled, But Shares Dropped 35% – Analyst Thinks He Knows Why

Photo: Shutterstock