Always consider hidden risks
The Energy Sector (XLE):  Cheapest since February 2005 ?
September 1 ​( 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
​June ​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 24 at ​57.74: the last time it did
​reach that level ​was on October 4 2011
.​( See first chart below ).

We are within an old downward channel that started on July 14 ​​with
​62.70 support and 68.02 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 but failed to stay above it thereafter. Last time the 20 DMA did cross on the upside was on March 25 2015. Closing price on XLE was 68.48 on August 31.​​

​​​​And on a ratio basis ( Energy Sector ETF ( XLE ) over the Mighty​ SP500 Index ), the Energy Sector started to outperformed since August 24 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 February 2005.
( See second chart below - Ellipses )​.

The Energy Sector (XLE): Cheapest since February 2005 ?  $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 )​​