Thursday, November 18, 2010

Energy ETF (XLE)

Energy Select Sector SPDR ETF (XLE) chart analysis ;
Imagine you are an FBI agent facing a murder scene ; You are not supposed to come with emotions, you just need the "facts" in order to draw a probable move/motive :)
Focus on the facts (see the chart) ; they all point to ;
1) Uptrend intact
2) Uptrend was "too steep", and price rose too fast.
3) Current pattern = Probable move is a channel pattern, waiting for Shanghai to rise again and send this ETF back above $64

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