Always consider hidden risks
The Energy Sector (XLE):  Above the 20 DMA ?
Aug 13 ​( From TradingView  )
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​​​​​The Situation

On October 22, a Death Cross happened on ​The Energy Sector ETF ( XLE ). It's simply
​a pattern in which the short-term 50-day moving average crosses below the longer-term
​200-day moving average and quite a bear sign indeed.
( See first chart below )

XLE ETF 20 DMA ( Day Moving ​Average - Yellow Line - Chart Below ) crossed on J
​une 2 ​below the 50 DMA ( Day Moving ​Average - Red Line - Chart Below )​,
​a bad technical sign. Closing price on XLE was 73.23 on July 15.

​​The XLE reached a new low on August 8 at ​66.29: the last time it did
​reach that level ​was on July 24 2012
.​( See first chart below ).

We are within an upward channel that started on August 6 ​​with
​68.60 support and 70.70 as resistance.
( see first chart below )

The XLE ETF  closed above the 20 DMA ( Day Moving  ​Average - Yellow Line - Chart Below ) on August 12 then at 69.89,
​a good technical sign indeed. Last time the 20 DMA did cross on the upside was on March 25 2015. Closing price on XLE was 70.56 on August 12.​​

​​​​And on a ratio basis ( Energy Sector ETF ( XLE ) over the Mighty​ SP500 Index ), the Energy Sector started to outperformed since August 6 and the the 7 DMA on that ratio did not turn upward yet.
( See second chart below - Grey Vertical line)​.

But the most interesting Technical Factor is that, on a relative basis​​ ( Ratio of the Energy Sector ETF( XLE ) over the Mighty​ SP500 Index ), we reached level last seen in May 2005.
( See second chart below - Ellipses )​.

The Energy Sector (XLE): Above the 20 DMA ?  $SPY, $SPX, $XLE #Trading #Investing #xle #SP500
Energy Sector ​ ETF XLE
over SP500 Index
( Blue Line )
21 DMA ( Amber Line )​

SP500 Index​ ( Candle )
Energy Sector  ETF XLE
Daily Candles​
20 DMA ( Yellow Line )
50 DMA ( Red Line )​​