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Energy ETF (XLE) has struggled to get above the $80 level while creating a series of higher lows over the past 18-months. This price action could be creating a bullish ascending triangle pattern.
The top of the pattern comes into play at the resistance line (1).
If the resistance line (1) is taken out, a “measured move” calculation suggests it could rally up to the $95 zone, which is more than 20% above current prices.
If XLE breaks out, it should attract buyers!