A lot of analyst have been publishing bullish outlooks for
XLE
. But we have
OIH
in our portfolio for long term position and now is also making several bullish signs. Bullish divergence with the MACD, above average buying volume and price action making a head & shoulders pattern (reversal pattern).
This trade would be a short term trade. The buy point is on the breakout above $197 and the target for profit taking is at $230 for a 16% profit. The projection for price target comes from the rules of the "h&s" pattern. According to the Bulkowski Chart Pattern Ranking (thepatternsite.com/id75.html), this pattern is Rank #1 with a 50% chances of a throwback after the breakout, so be aware.
XLE
. But we have
OIH
in our portfolio for long term position and now is also making several bullish signs. Bullish divergence with the MACD, above average buying volume and price action making a head & shoulders pattern (reversal pattern). This trade would be a short term trade. The buy point is on the breakout above $197 and the target for profit taking is at $230 for a 16% profit. The projection for price target comes from the rules of the "h&s" pattern. According to the Bulkowski Chart Pattern Ranking (thepatternsite.com/id75.html), this pattern is Rank #1 with a 50% chances of a throwback after the breakout, so be aware.
Trade active:
Perfect Tenis Ball action, good rebound from a throwback to the neckline.