Energy Stocks Test 10 Month Rising Trendline
As crude oil tumbles lower -4% on the day, the SPDR energy sector ETF $XLE is also getting hit hard, down -2% to the round 70 price tag.
This area will be key to pay attention to as it coincides with a 10 month rising weekly trend-line that has supported price since March of 2016.
As it stands right now the energy sector XLE is down almost 11% off its highs from December of 2016 which is quite the relative bargain given every other sector is trading at or near highs.
It’s generally best to let the dust settle when price comes back hard to re-test long term potential support, but for you tactical traders looking for some mean reversion, you may have opportunity knocking.
Good luck out there.
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