This setup basically means that you buy the C point in what could turn out to be a pattern, aiming towards the D point (near 80$) as longer term setup. The 65-68$ zone must be considered also as target zone as the price should meet the downtrend line there if indeed it'll rally from the 60$ .
Stop loss should be with some safety distance below the A point. In the chart I'm showing an example of 3.5% Risk with potential 10% reward (almost 3 R/R ratio).
Despite the potential setup, we don't know that the price indeed intend to rally towards the D point so there's definitely a good chance that $XLE will continue lower and break below 58$ so you have to consider this risk.
Tomer, The MarketZone
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