$XLE Downtrend

Sep 25

I have wanted to be bullish on the energy sector, but this chart tells me it is in a downtrend. We have a series of lower highs and lower lows. There seems to be some horizontal support around $86. However, that has been violated on the last lower low.

I am terrible at shorting stocks, so I’ll stay on the sidelines unless or until the XLE puts in a higher low AND breaks above the upper downtrend line. All TBD. (I took a trade on XLE on Sept 16 when it both broke above the horizontal resistance line AND moved above the low set on Aug 5th. I closed it yesterday for a 3% gain as I could see it struggling to get up and over the DT Line.)

Comments always welcome. Thanks for looking.

Oct 2

Trade active

I have opened a 1/2 sized position this morning with a stop just below today's low. Let's see what happens. (Middle East Tension is the reason for the break-out)

Oct 2

Trade closed: stop reached

This dipped below the opening range so I closed it for a small loss.