Monday, August 15, 2016

Well I Think Energy (XLE) Has Been Here Before: The $69.50 Barrier

I posted a month ago the resistance at $69.50 on Energy ETF XLE that was being approached and looked like a good long/buy if it every got above it. Any break I said, would have been a bullish sign. Well, as fate would have it XLE retraced like a lot of resource stocks did at that time, and like those other resource stocks, Gold seems most notable in my mind, have been stuck in a horizontal trading range. The larger ascending channel that XLE is in is still valid and looking very strong but before our ascent can continue with energy and energy stocks $69.50 must be broken. I had a personal long/buy (blue arrow) at around $67.00 and told myself I'd lighten up when we got close to this overhead resistance in case it retraced again but that I'd resume buying once we had a confirmed break above it. Things that I like about this ETF right now are that the EMA's are positioned appropriately and my favorite momentum indicator is about to turn positive.