XLE/ERX - Bear Island
The chance is high that we are printing an island reversal today in XLE.
Yesterday a lot of players stopped out in ERX and XLE as we broke to new lows.
I think it was only a final shakeout before the next rally.
If we have a gap open today and the gap is not filled we are printing an island reversal . It would be a very strong bullish pattern in XLE and ERX.
This could sign a long term bottom in XLE and ERX. It is important that the gap should not be filled. In this case it's a runaway gap which might never get filled.
LONG follow through idea
Yesterday a lot of players stopped out in ERX and XLE as we broke to new lows.
I think it was only a final shakeout before the next rally.
If we have a gap open today and the gap is not filled we are printing an island reversal . It would be a very strong bullish pattern in XLE and ERX.
This could sign a long term bottom in XLE and ERX. It is important that the gap should not be filled. In this case it's a runaway gap which might never get filled.
LONG follow through idea
Comment:
Gap is still open...
Comment:
Chart the XLE and not the ERX...
