Monday, September 18, 2017

Well Isn't This Interesting? Energy ETF XLE On A Sell With Possible Inverse Head And Shoulders Pattern

I normally prefer wedges when it comes to making my predictions but this was too good to pass up. Energy ETF XLE has been on a real tear lately due mostly to hurricanes and granted there has been some damage to the Texas infrastructure it isn't the mess some people were generally expecting. XLE is right now come up to a critical resistance level, $66.00, with two prior touches of what appears to be a "left shoulder." The RSI(5) also appears to be putting in a short term sell signal so I expect this to be confirmed with a change in the EMA's. What's also interesting is that XLE is starting to move above the MA(144), another bullish move. Near term XLE is looking "short" but the medium term prospects (which require a little more clarity) may be bullish!