Energy Stocks Lead Crude Oil

11/03/2010 10:05 am EST

Focus: COMMODITIES

Thomas Aspray

, Professional Trader & Analyst

chart
Click to Enlarge

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 MoneyShow.com. The views expressed here are his own.

Related Articles on COMMODITIES