Always consider hidden risks
The Energy Sector (XLE): Back at the Resistance Zone?
June 21 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, Against All Odds, the XLE ETF is within a strong ​rebound, making
​higher lows and higher highs into an Uptrend Channel.

​But one interesting technical factor is that ​we had a false breakout on the ​Second Major ​​
​Resistance Trendline ​that started back on November 3 2015. 
​​​(See chart below - Red TrendLine - Ellipse)

​All that within a ​rising ​trading volume environment. ​​(See chart below - Bottom Blue Area Chart - Ellipse)

As we are testing again that Second Major Trendline price wise, we are near breaking the Second Major Resistance Trendline on a relative basis (Energy Sector ETF - XLE  over the Mighty​ SP500 Index - SPY ETF), so critical fo Bulls on a second attempt. 
​(See second chart below - Blue TrendLine - Ellipse)​.

​​​The real battle for Bulls for me is already won as we are above the 200 DMA (Day Moving Average) price wise now at 63.17 and on a relative basis now at 0.3126. (See charts below - Green Line)​.

The Energy Sector (XLE): Back at the Resistance Zone? $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 )