We recently closed out of XLE for a modest gain.
Price is now at a better support level to get long again. The monthly chart from the low in 2002 shows good primary support; the upwards sloping green trend line.
SPDRs Select Energy ETF (XLE) monthly
The weekly chart confirms this price zone as a valid support level as well.
SPDRs Select Energy ETF (XLE) weekly
The daily chart had a nice pop on Friday.
SPDRs Select Energy ETF (XLE) daily
The other good news is the talk on the Street is lower energy prices. This is also a good sign. This is as good an entry as we are going to get.
First target is $71. Risk is under green trend line. I’m buying XLE on Monday morning.
Trade Smart,
Don