Friday, May 27, 2016

Energy sector (XLE): Make it or Break it!

Back in November 2015 we correctly predicted the upcoming for that time XLE lows at around 52 (Energy stocks (XLE) about to bounce and head south) and then again in February this year we suggested that XLE was a buying opportunity at around 56$(Energy Sector Equities (XLE): A buying opportunity).

So what's the current situation?
Currently XLE approaches a VERY significant level at around 67$.

Bulls need to see XLE breaking above 67 (even temporarily) towards the resistance zone of 71-74.In this case the formation of an Inverted Head and Shoulders formation is very possible, leading XLE much higher

On the other hand if XLE fails to break above 67 then the road towards 52 or even towards 41 is wide open.

To deal with the above situation we have already started to take our profits from XLE off the table