Energy Stocks Lead Crude Oil

11/03/2010 10:05 am EST


Thomas Aspray

, Professional Trader & Analyst

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The Energy Select Spyder ETF (XLE) has rallied sharply from the September lows as it is up almost 18%, however, it is still below the April highs at $63.30. There is initial support in the $57.50-$58 area. Crude oil is up by almost the same percentage, but the chart looks weaker as crude is just barely above the summer highs, while XLE is much higher. There is still key resistance in the $87 area with important support at $79. The on-balance volume (OBV) on crude oil is not supporting the rally as it has formed lower highs over the past four months.

Tom Aspray, professional trader and analyst, serves as video content editor for The views expressed here are his own.

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