This is as much an excuse to test the NFTRH+ ‘opt-in’ list as it is a reason to update the energy sector (XLE). At the next regular update I will note that this post was emailed and anyone who either sees this post at the site or sees it referenced in the next regular update but did not receive it by email, please contact me. I think the list is good to go, but…
Here is the big picture view that we followed for several months as it worked its way down to the key support level, long after it was originally presented as a ‘look ahead’ in a ‘+’ update. So far so good with respect to this area holding as support. If it holds today it would close the month above the channel after having tested lateral support for 2 consecutive months. Not bad.
Here is the daily view, still dealing with lateral resistance at and around 58. Much like the S&P 500, XLE has crept above the SMA 50 but unlike SPX, has not exceeded the January high. Volume is not overly inspiring but it can take players some time to gather some conviction. If oil continues to bounce and SPX holds here and moves higher in its bounce scenario, so too should XLE. The short-term target, if XLE exceeds resistance would be around 65-66 and the SMA 200.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.