Always consider hidden risks
The Energy Sector (XLE): At Technical Crossroads?
April 11 2016  ​( From TradingView  )
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​​​​​The Situation

The Energy Sector ETF (XLE) keep making since May 2015 lower highs
​and lower ​lows technical pattern, ​anyway a bad good technical sign
​indeed​ as shown by ​the ​​first ​​chart ​below.

​​The XLE ETF reached a new low on January 20 2016 at ​49.93: the last
​time it did ​reach that level ​was in July 2010.​

​​​And since January 20, we are into a strong dead cat bounce on the

​But one interesting technical factor is that ​we are near testing the ​Major
Resistance Trendline that started back on May 5 2015 and so ​critical for ​Bulls to break. ​​(See chart below - Red TrendLine - Ellipse) All that within a ​falling ​trading volume environment. ​​(See chart below - Bottom Blue Area Chart - Ellipse)

As we are near testing that Major Trendline price wise, we are also near the Major Resistance Trendline on a relative basis ( Energy Sector ETF - XLE  over the Mighty​ SP500 Index - SPY ETF).
​(See second chart below - Red TrendLine - Ellipse)​.

​​​But for me, the real battle for Bulls will be to break above the 200 DMA (Day Moving Average) price wise now at 64.05 and on a relative basis now at 0.3175. (See charts below - Green Line)​. We are still below the 200 DMA since September 2014 price wise and on a relative basis on the XLE ETF.

The Energy Sector (XLE):At Technical Crossroads? $SPY, $SPX, $XLE #Trading #Investing #xle #SP500
Energy Sector ​ ETF XLE
over SP500 Index ( SPY ETF - Candles )
20 DMA ( Yellow Line )
​​50 DMA ( Blue Line )
200 DMA ( Red Line )​

Energy Sector  ETF XLE
Daily Candles​
20 DMA ( Yellow Line )
​​50 DMA ( Blue Line )
200 DMA ( Red Line )