Invesco S&P SmallCap Energy ETF (PSCE Quick QuotePSCE - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 86.39% from its 52-week low price of $30.94 per share.

Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.

PSCE in Focus

The underlying S&P SmallCap 600 Capped Energy Index is designed to measure the overall performance of common stocks of US energy companies. The product charges 0.29% in annual fees (see: all Energy ETFs).

Why the Move?

The energy sector has been an area to watch, given the rise in oil prices due to the ongoing conflict in the Middle East. The closure of the Strait of Hormuz and concerns around supply disruptions have increased oil prices. Prolonged tensions in the Middle East could lead to increased volatility surrounding supply and a further surge in oil prices.

More Gains Ahead?

Currently, PSCE has a Zacks ETF Rank #5 (Strong Sell) and a High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 54.61 (as per Barchart.com), which gives cues of a further rally.