The energy sector is showing signs of life again? Should investors trust this move?
We’ll let the price action speak for itself, but it investors should get a signal soon.
Today’s chart take a long-term “monthly” view of the Energy Sector ETF (XLE) and highlights the current downtrend… as well as the recent rally.
The early year spike lows (coronavirus crash) were successfully retested this summer spurring a rally for XLE and energy stocks. XLE is now closing in on an important 15-year price support/resistance level at (1). The current rally is being fueled by higher crude oil prices (now nearing $50) and a broader commodities rally. Looking at the chart, this looks like a big test for the out of favor Energy Sector (XLE).
If XLE succeeds in breaking out above (2), look for continued upside price movement.
This article was first written for See It Markets.com. To see the original post CLICK HERE.