hello all,
while scanning the broader market I recently stumbled upon the energy sector's ETF (XLE) and the message I got was startling to say the least. Energy itself has been on quite a run of late but it appears as though that rally may have run out of steam. Indeed, the Double top registered through late July looks rather solid and support levels look a long way away from current levels. For those that missed the original topping even, I could see a nice rally off the 38.2 Fib ('1st stop' target) back up into resistance. The OTE (short) zone at the moment coincides with both the down trend line off the top and some gaps that ought to be filled. If I wasn't short now, I would use that counter trend rally (OTE short sweet spot 99.30) to get short and risk against that double top high (101.52). Targets remain the 50% level (91.65) and ultimately the OTE (long) zone and its sweet spot near 87.00.
Cheers all and hope my simple analysis is of benefit
Brian
aka CRInvestor
while scanning the broader market I recently stumbled upon the energy sector's ETF (XLE) and the message I got was startling to say the least. Energy itself has been on quite a run of late but it appears as though that rally may have run out of steam. Indeed, the Double top registered through late July looks rather solid and support levels look a long way away from current levels. For those that missed the original topping even, I could see a nice rally off the 38.2 Fib ('1st stop' target) back up into resistance. The OTE (short) zone at the moment coincides with both the down trend line off the top and some gaps that ought to be filled. If I wasn't short now, I would use that counter trend rally (OTE short sweet spot 99.30) to get short and risk against that double top high (101.52). Targets remain the 50% level (91.65) and ultimately the OTE (long) zone and its sweet spot near 87.00.
Cheers all and hope my simple analysis is of benefit
Brian
aka CRInvestor