DUG on the Move, XLE (Energy ETF) on the Wane
By Mike Paulenoff, www.MPTrader.com
Let's notice that although both the XLE and the DUG have established significant extreme prices, and are in the midst of a correction, the DUG has violated its Mar.-June resistance line and is consolidating on the breakout side, whereas the XLE has not violated its Mar.-June support line- and is consolidating on the non- breakout side. From a technical trading perspective, the DUG exhibits much more bullish near term potential than does the XLE exhibit near term bearish potential. Both patterns point to additional price action in the post-5/20 direction, however, powerful acceleration will have to wait until the XLE violates key support at 85.50/20 (last is 86.70).