SPDR Select Sector Fund - Energy Select SectorArca
Description
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Comment
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Comment
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Attempt 1, fail
Comments
lantao517
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Hi hope find you well. The 2nd attempt has finished the breakout of 20 DMA, but the 50 DMI is becoming the strong resistance here now.
do you have some update on it?
lantao517
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Hi Clemens, XLE still quite weak yesterday, even WTI & Brent rose by more than 1.5%, and what we saw from OPEC + non OPEC meeting was so unexpected encouraging. Something wrong happened to XLE?
lantao517
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Do I expect one more breakout try? Or it's the end of the short rally?
The selling pressure was so strong after the false break out?
Do you suggest hold the long or stop loss
EMA21
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@lantao517, XLE is a wide based product and the charts above are daily and weekly - I use it more as a market sentiment indication (not for trading). Personally I wold like to see this level hold and later a close above last test and failed high before drawing any conclusions... hope it was to any help
lantao517
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@clemens, RSI is turning down, and RSI is still at 53 and still lot's room again or to get down.
Do you expect RSI to find bottom around 40 and forming divergence?
EMA21
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@lantao517, we are in a down trend - RSI over bought is the signal... (for short)
I want to see close above structure left, and with impulsive move before initiating longs
lantao517
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@clemens, thank you Clemens, understand.
Now is quite similar to April, XLE jumped by over 5% and finally made a false break under the down trend resistance. Do you think this time will repeat what happen in April? I mean there will be a impulsive down after last week false breakout.
Thank you so much
lantao517
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@clemens, Last week XLE broke out of the descending channel (red) and resulted in a false break, is that still a positive signal?
I am worry about it, RSI is not in good area, even RSI and MACD are both show positive divergence shape. If the 10DMA was broken down, then a sharp decline will start, because it used almost 4-5 weeks to build up this round bottom.
Anyway, I still hoping the XLE will do 2nd test and breakout finally late this week, because fundamentally both OECD and US oil inventory is decreasing sharply every month since Feb/2017. which should finally push oil price up again.
How do you think about it?
do you have some update on it?