The Energy Select Sector SPDR (ETF)(NYSEARCA:XLE) is a strong short
The Energy Select Sector SPDR (ETF)(NYSEARCA:XLE) is a strong short in my opinion. This comes from pure technical analysis. First, the $XLE hit the daily 200 moving average, after surging since mid-August from under $62.00 to a high today of $68.90. This is a monster move in a very short time frame. Next, oil is trading in the upper range around $52.00. Just weeks ago it was near $45.00 at the low end of the range. This range has been active for most of 2017 and continues to hold. Next, the $XLE is pulling back off the daily 200 moving average forming a topping tail. Topping tails are great reversal signals. Off these factors, I expect the price of the $XLE to fall to $66.00 - $66.50.
posted Sep 28 '17 by inthemoneystocks