NFTRH+; Energy Sector Short and Long-term Views Updated

Updating the short and long-term views of XLE and sending to the entire list as it is a sector of interest to so many economies and markets and thus, of macro concern.

XLE Daily broke above the key resistance level yesterday and assuming we have a weekly close above it tomorrow, that is now support.  Indeed, it is tentative support now but I kept it red to play devil’s advocate.  A reasonable measurement from the pattern is 64-65.  That is for the traders among us.

xle daily chart

For investors, we have the monthly that we noted held key support and closed 2 months in a row above the lower channel line.  So far in March it is using that line as support.  The daily targets 64-65, but the monthly does not bring in strong resistance until the low 70’s.  A lot will depend on the the underlying commodities going forward, obviously.

xle monthly

The original update also included XOM, and as you can see it has been a relative strength leader and looks constructive after getting above resistance and turning it to support.  These are some interesting charts for energy true believers.  XOM is at the mid-Bollinger Band, which has stopped the last 2 bounces.  If it breaks through here it would obviously be positive for the sector.

xom monthly chart