Always consider hidden risks
The Energy Sector (XLE): At the Support  Zone?
July 27 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 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)
All that within a ​rising ​trading volume environment. ​​(See chart below - Bottom Blue Area Chart - Ellipse)

​Now, the XLE ETF is back testing the Support Trendline of that Rising wedge.
(See first chart below - Blue Trendline - 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.
​(See second chart below - Blue TrendLine - Ellipse)​.

​​​The real battle for Bulls for me is in jeopardy as we are below the 200 DMA (Day Moving Average) on a relative basis now at .312. (See second chart below - Green Line - Ellipse)​. If we break the Support Trendline price wise, Bulls will have lost the battle...

The Energy Sector (XLE): At the Support 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 )