Disclaimer: I don't own shares of XLE . This analysis is not a trading or investing recommendation & is only for educational purpose.
1. XLE has been going up slowly & steadily since Mar’20 after putting a bullish 1-2-3 pattern marked by the successful break of point#2 of the pattern.
2.In Jan 2022 price crossed a major downtrend resistance line (dotted line)...
Energy remains super strong and I still think it has the potential for more upside. You can see on $XLE that the $62 area is where I may think some resistance shows up. But if we pull back ahead of that, i still like the buying opps down around $51 (20d)
It may need to cool off after having quite the run, but I think pullbacks now are buying opportunities. If the $XLE were to pull back to the 48-49 area, I would be looking for strong energy stocks that were looking ready to get a leg higher.
One thing that is important to point out is the fact that each weak I look at all the different sector ETFs to see their charts. Just because something had a down week doesn’t mean that I’m not interested in it. Look at the Financial sector for example. They were down over 2% for the week. But then look at the $XLF chart.
You can see it’s really just pulled...
