From a technical level, the XLE is showing a potential head and shoulders setup on a monthly chart. Combine this with major bearish divergence leaves shorting this basket of stocks as the trade of the year.
Any potential good news on the Ukraine/Russia front would be devastating on a fundamental level.
Everyone is long energy. Be brave, be bold. AMEX:XLE
After the Organization of the Petroleum Exporting Countries supply cut and considering the Elliott Wave Chart Pattern, i would say the next price target for XLE Energy Select Sector SPDR Fund is $92.60.
Looking forward to read your opinion about it.
Oil heading lower, 60 could be in the cards. Unusual spike in consumer spending on travel weakens, Summer driving demand slows. Bidens releasing more SPR doesn't help, prices heads lower, but doesn't encourage spending what ya don't got, and any excess cash goes toward food inflation which is unofficially skyrocketing, in case you haven't been to the grocery...
Following the recent oil selloff the XLE sector is now pulling back. With a clear divergence in the RSI with the 3 recent price tops, it seems like the XLE has completed 5 waves up. Following that is a 3 wave correction as a flat and is now preparing to finish the last leg of it, before exploding higher sometime next year.
NYSE:XOM
Xom is at 52W high, while oil is 30% lower, for me it's weird how the main reason for the acceleration of the XLE made the correction but XLE didn't.
Waiting for XLE to go down with XOM
Look at the tunnel and the Candles that cannot break, Volume decrease. I'm in
Entry 114
TP1: Fib level 1 - 107
TP2: Fib Level 2 - 103
SL:121
Have fun
Energy should be topping here looking it at as a whole, OXY also at a great longterm short. Looks like a giant right shoulder on XLE from 2007, I think energy stocks should rotate into growth for the next bullish sector.
Based on Monthly parallel channel, we have major resistance around 90$ with double top likely at 93$. Easy pullback likely to 80$ from current extended levels.
SL : Confirmation above the monthly channel
Target : 80$
XLE looks like its forming a nice Rising Wedge on the daily chart. The bad news is we're heading into the Summer which usually leads to higher demand, and Rising Wedges aren't particularly good performers from a statistical standpoint. The good news is that they do offer about 2:1 odds of a reversal once the Wedge breaks. In addition, the momentum indicators are...
The Energy Sector will be the first to sell off once high growth becomes favored again. XLE is overpriced because of inflation fears when in reality inflation is on a downtrend Month over Month. I expected to see Energy costs fall in the short term along with XLE's price. Playing 2/18 $61 puts at $1.59 a contract.
Let us again look out on how XLE is shaping up
(previous analysis attached for your reference)
Price moving just as expected, as evident in the charts, we had support on $ 53.36 levels , which was 24th Dec 2019 low. Price closed at about this level over the last few weeks but during the week, this level was breached. Minor cycle low formed 27th Jan 2020, 2 weeks...
XLE is currently the weakest sector among all other sectors and the market SPY is in basically in a SELL or an overbought area. Feeling bearish right now and shorting the weakest sector ETF is a good choice.
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