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.
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.
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.
