Energy ETF Clears Resistance

12/14/2010 10:22 am EST

Focus: ETFS

Thomas Aspray

, Professional Trader & Analyst

chart
Click to Enlarge

The chart of the Energy Select Spyder ETF (XLE) overcame year-long resistance in the $65 area almost two weeks ago (see arrow). This now becomes an area of good support that extends down to the $63 area. The daily on-balance volume (OBV) is positive, but the weekly OBV looks even stronger. This bullish action suggests a move to XLE’s 61.8% retracement resistance at $71, if not the strong weekly resistance in the $78 area, is possible. XLE would look attractive on a pullback to the $65.40-$65.80 area for a move to the weekly resistance level. A close below $60.80 would invalidate the bullish case.

Tom Aspray, professional trader and analyst, serves as senior editor for MoneyShow.com. The views expressed here are his own.

Related Articles on ETFS

Keyword Image
The Omen
12/07/2017 10:50 am EST

The probability of an equity market correction over the next few months is slim to none, so there co...