Technical Damage in Energy, XLE

Technical Damage in Energy, XLE
By Mike Paulenoff,

The weakness in the Energy Select SPDR (AMEX: XLE) today has inflicted some technical damage to the near-term chart structure. Let's notice that the plunge beneath 77.10/00 has violated the up-trendline off of the August low, which has triggered downside follow-through to initial support at 76.00-75.80. Judging from the very negative juxtaposition of the price action and sharply declining RSI momentum gauge, I expect additional weakness to press the XLE towards 74.00 prior to any meaningful recovery rally period.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!