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 TECHNICALS
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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