Ref. the bullish bounce pattern in crude oil we noted in NFTRH 536. The target for WTI crude is around 60 (oil is currently around 54). So assuming that the stock market bounce has further to go * or will at least rotate through various sector bounces, let’s take a look at the Energy sector SPDR XLE, which also has a pattern.
XLE cleared the SMA 50 and is logically grinding at clear resistance.
I added the little in-day fade back into the resistance area (as I take some bounce profits and add other positions to replace them), but a trader would note that a successful break above 64 would yield a target at around the SMA 200 (currently at 70 and gently bent downward).
While decidedly long biased, the view that this is a counter trend market bounce has not changed. So we are not talking investment here. Not yet, anyway.
* At any such time as I abort that view any long positions could be available for sale.
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 your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.