Big-cap oil has been lagging behind the broader energy market, particularly the correlation between AMEX:XLE and $WTI.
The break of this trendline is significant and could result in big move down for large-cap O&G.
In the year 2000, the energy sector represented by XLE outperformed the technology sector represented by XLK. The trend seems to be repeating itself as we witness the commodities boom occurring just as the tech boom slows down.
This begs the question, will history repeat itself?!
During the tech boom in the late 1990s and early 2000s, the technology sector was...
After the Organization of the Petroleum Exporting Countries supply cut and considering the Elliott Wave Chart Pattern, i would say the next price target for XLE Energy Select Sector SPDR Fund is $92.60.
Looking forward to read your opinion about it.
The Energy sector is notoriously one of the last to roll over in a recessionary environment and the $XLE chart appears to be topping out right on queue.
After a euphoric run beginning in the middle of 2020, the Energy sector has stalled out creating a triple top near the $90 level.
With the break of the 200-day moving average, along with an accompanying bearish...
In my last my post, I XLE should bounce off 82 and retest is daily 50sma; Since then we've dropped back to 82.
Holding 82 is important for bulls. You Never want to see a Sector lose .236 fib if your a bull... .236 is a reversal fib.
Right below 82 is XLE primary trendline since 2020 lows at 80$. If we break and close below 80 we are looking at bearish...
Chart looks 90% identical to the Dow jones .
Both are sitting right on Weekly support of its 50sma .
XLE bounced off its daily 200sma (Gold wave) , I think we will bounce and retest our 50sma (Purple wave)..
Stop loss is a close below 81
I think this is the play right here, right now...Might be a nice swing to the upside for oil names, specially relative to the market.
Best of luck!
Cheers,
Ivan Labrie.
