Thursday, January 26, 2017

Energy (XLE) Poised For A Move?

Energy ETF XLE is looking very interesting. A "short/sell" was put in around the middle of December and I think now is the time to repeal it. Moving averages on the daily charts are bullishly aligning and currently holding just below resistance at around $75.40. A break above this overhead resistance tomorrow or in the first half of the new week would be very bullish.
Even the 30 minute chart (which I had been stupidly ignoring) is showing signs of life at the moment. We can see that XLE has already broken above the channel resistance line with EMA's bullishly aligned and now holding right at the MA(233). There might be a pullback to the EMA(89) which can be used as a 'stop,' but the long-and-short of it at the moment is XLE isn't looking like a speculative play here.