NFTRH Update; Energy Sector

We have had XLE on radar for a long while.  We reviewed the big picture setup in XLE and XOM in this NFTRH+ update on September 1.  Speaking personally, I have not watched very closely since then because the volatility was not something I found pleasing.  But today XLE is a making a move (in line with so many other of the bounce/short-term bottom patterns we are watching) and knowing there are a lot of subscribers interested in the energy sector, I wanted to note it.

This break above 70, assuming it holds, targets 80 or a little higher.  It is a very clear pattern.  The gap at 64 never filled and nor does it need to any time soon if it is a breakaway gap.  It happened amid a volume surge and changed the trend above the 50 day MA’s, so that sure does look like a breakaway gap.

xle daily chart

For reference, here is the chart from the original big picture NFTRH+ highlight (updated to today).  Resistance was noted in the original update and that is roughly in line with the SMA 200 currently around 73 on the daily chart above.  So there could be some grinding there.  But the daily pattern’s measurement is what it is.

xle monthly chart

Just an FYI update for those interested.  The 70 area where XLE is trying to establish support (and a breakout) could be considered a warning to the bullish line of thinking.