We started the year highlighting the golden cross in the SPDR Energy , which proceeded to jump to a seven-month high. Prices have pulled back since and are now trying to hold their 50-day ( ).
The next feature on XLE’s chart is the oversold condition on stochastics.
The other important chart is the price of oil itself. This image shows the outside candle yesterday on WTI Crude Oil CFDs ( USOIL ). Black gold’s closing price was the second highest since the pandemic selloff began almost a full year ago. (Remember energy fell before the broader market last February.)
Oil has benefited from a favorable supply/demand mix as the global economy continues to reopen. The Energy Department’s inventory reports have been tighter than expected in four of the last five weeks. (Less supply means less of an oil glut.) Bloomberg also reported on Sunday that OPEC+ complied with a historically high 99 percent of agreed cuts in January.
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