themarketzone

Two trading scenarios to monitor during FOMC week

AMEX:XLE   SPDR SELECT SECTOR FUND - ENERGY SELECT SECTOR
$XLE reached the final target zone of the last bullish setup I published for it.
AB=CD pattern was complete and now the price is testing a daily downtrend line.
As we will open FOMC week, the first thing to monitor is where the price is related to 63$ (current resistance structure zone).
If it'll be below it, we may see a short term pullback towards 60$ and potentially even to 58$.
If it'll close above the trend line , we may see it continue towards the 66$, there it'll meet the 200 days MA.

The two potential scenarios are shown in the chart.
I'd much rather see $XLE declines to levels that will allow me to buy it before the price's next bullish wave.

Tomer, The MarketZone
This analysis is part of the Weekly Markets Analysis newsletters

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Comment: Approaching upper sell zone
Comment: Pullback reached nearest support. Still potential upside but setup remains valid
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