SPDR Select Sector Fund - Energy Select SectorArca
Description
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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