ENERGY SELECT SECTOR SPDR ETF ( $XLE 1D) the cup is full
Everyone is well aware that the current state of the world economy is dire.
In my previous analysis I was following the price of WTI and USOIL (link below) but due to the MAY contract debacle the charts are now trash.
So, now to monitor the advancement of the recovery I will now use the Energy sector ETF XLE. It will not be a leading indicator as a transportation index would, but it can be a good indication of the overall economic activity or expectations.
The recent “crash” is what’s look like capitulation (high spread on high volumes). It could take time to recover. Maybe months.
On a daily time-frame however I identify a pseudo cup and handle pattern. Even if it’s not a full reversal on higher time-frames it can lead to a good swing trade.
The price is now retesting the neckline of the pattern ( 35.90) as a support, so it is a good entry point and a good way to manage risk.
Target 41.60 to close the gap then 47.41 last resistance.
The price made a double bottom several weeks ago.
Bullish div RSI
Let us see how all this will turn out.
As time goes by, I will keep you updated on the evolution of the asset price, so make sure to follow me on Tradingview
If you have any questions or requests, fell free to ask @Djio_ .
Disclaimer: This is not financial advice as I am not a financial adviser.
This is just my knowledge on what can be said and done from the chart.
Due to the volatile nature of the market, everything can change on a day to day basis.
Everyone is wise to manage their risk properly when considering any trading decision or activities.
PS: I cannot emphasize enough the risk associated with the activity of trading ETF due to the imaginary nature of all paper contracts, the reason why I prefer mainly trading cryptocurrencies instead of more “traditional” assets. On the other end without total systemic collapse it can quickly become a good trade opportunity .
In my previous analysis I was following the price of WTI and USOIL (link below) but due to the MAY contract debacle the charts are now trash.
So, now to monitor the advancement of the recovery I will now use the Energy sector ETF XLE. It will not be a leading indicator as a transportation index would, but it can be a good indication of the overall economic activity or expectations.
The recent “crash” is what’s look like capitulation (high spread on high volumes). It could take time to recover. Maybe months.
On a daily time-frame however I identify a pseudo cup and handle pattern. Even if it’s not a full reversal on higher time-frames it can lead to a good swing trade.
The price is now retesting the neckline of the pattern ( 35.90) as a support, so it is a good entry point and a good way to manage risk.
Target 41.60 to close the gap then 47.41 last resistance.
The price made a double bottom several weeks ago.
Let us see how all this will turn out.
As time goes by, I will keep you updated on the evolution of the asset price, so make sure to follow me on Tradingview
If you have any questions or requests, fell free to ask @Djio_ .
Disclaimer: This is not financial advice as I am not a financial adviser.
This is just my knowledge on what can be said and done from the chart.
Due to the volatile nature of the market, everything can change on a day to day basis.
Everyone is wise to manage their risk properly when considering any trading decision or activities.
PS: I cannot emphasize enough the risk associated with the activity of trading ETF due to the imaginary nature of all paper contracts, the reason why I prefer mainly trading cryptocurrencies instead of more “traditional” assets. On the other end without total systemic collapse it can quickly become a good trade opportunity .
Trade closed manually:
support did not hold.
I sense a crash coming.
support did not hold.
I sense a crash coming.
