Always consider hidden risks
The Energy Sector (XLE): Bottoming Out ?
October 6 ( From TradingView )
If you would like to receive our free daily markets updates, please Sign-Up
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
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 a new uptrend channel that started on September 29
with 61.31 support and 66.44 as resistance. ( see first chart below )
The XLE ETF closed above the 20 DMA ( Day Moving Average - Yellow Line - Chart Below ) on October 2 then at 62.97,
a good technical sign indeed. Also, the XLE ETF closed above the 50 DMA ( Day Moving Average - Red Line - Chart Below ) on October 5 then at 65.41.
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. So 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 - Grey Vertical line).
But the most interesting Technical Factor is that we broke a Major Resistance Trendline on October 5 then at 64.27 that started back on May 5 2015. ( See second chart below - Blue Trendline -Ellipse ).
XLE ETF is in a Bottoming Out Phase indeed as Sentiment is picking up. ( See third chart below )
The Energy Sector (XLE): Bottoming Out ? $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
20 DMA ( Yellow Line )
50 DMA ( Red Line )
SP500 Energy Sector Bullish % Index
7 dma ( Blue Line )