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The Energy Sector (XLE): At the Resistance Zone?
August 18 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 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, Against All Odds, the XLE ETF is within a strong
rebound, making higher lows and higher highs into a Rising Wedge.
But one interesting technical factor is that we did test on July 12 the Major
Resistance Trendline that started back on November 3 2015 and failed to break it. (See chart below - Red TrendLine)
Now, the XLE ETF is getting back testing the Resistance Trendline of that Rising wedge.
All that within a falling trading volume environment. (See chart below - Bottom Blue Area Chart - Ellipse)
As few of us realize that, in fact, we already broke on July 20 the Major Support Trendline on a relative basis (Energy Sector ETF - XLE over the Mighty SP500 Index - SPY ETF), so critical fo Bulls back then...
(See second chart below - Blue TrendLine - Ellipse).
As we are testing on a relative basis the 50 DMA (Day Moving Average) (See Second Chart Below - Red Line),
the real battle for Bulls is getting above that Major Relative Resistance Trendline that started back since October 8 2015. (See second chart below - Grey Trendline). The best technical set up is a breakout in price AND on a relative value basis...
The Energy Sector (XLE): At the Resistance Zone? $SPY, $SPX, $XLE #Trading #Investing #xle #SP500
#stocks
Daily RATIO
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 )
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