Saturday, June 11, 2016

Running Out Of Energy (XLE, USO)

Energy has had a grand run for the last six months since the powers-that-be allowed for a retracement in crude to occur after the market-share-debacle/punishment for Syria/Ukraine thing took place between Saudi Arabia, the United States and Russia. However, I have pointed out for the last two weeks or so a massive bearish ascending wedge developing across energy markets and the time for a further decline in said markets is upon us.
A sell signal on the RSI(5) for the weekly XLE chart has emerged which  has reaffirmed my short/sell prediction. XLE was also firmly rejected at $70.00 with an expected retracement to $64.00.
This massive bearish wedge has also appeared in the Crude Oil ETF (USO) which I have also been watching for some time now. We are rapidly running out of room in both patterns and without a huge move up I expect that we will see some fluctuations in the near future.

No comments:

Post a Comment