Tuesday, September 27, 2016

Energy (XLE) Creating An Interesting Bullish Formation

But....could it be? Really? I've never seen one of these before, especially for an industry that's basically just had its ass handed to it by a failure of OPEC to come to an agreement on curbing the collapse in Crude Oil. Energy ETF XLE is generally bearishly configured: the EMA's are crossing over to the down side and an ascending channel looks like it's set to break. But out of nowhere a bullish declining wedge has appeared making it seem like the large ascending channel will continue right after a second touch is put in on the support line. This could be played with tight buys and stops at $65.50. This could be an epic contrarian play right now (as the article previous posted article by Tim Knight points out).