Thursday, October 20, 2016

Energy (XLE) Showing New Upward Channel

We recently called the ascending wedge in Energy ETF XLE a few days ago absolutely perfectly and support was found like clockwork at the EMA(34). Now an upward channel is developing in XLE, albeit a rather narrow one. Overhead resistance is at around $72.50 and if that were to be breached a further strong thrust should be expected. The alignment of the EMA's right now could not be more perfect with the EMA(9) and EMA(13) both directing upwards. The OPEC agreement is a little wobbly but energy prices have rallied impressively since.