LEVEL TO OVERCOME
XLE has been holding up here last few months above the rising “200SMA” after hitting the resistance (horizontal red) 79ish in late May of this year and declining back down 72ish in mid August of this year. Currently clearing above the falling-resistance (blue dotted line) and heading to retest the major pivot at 79ish here once again. This 79-80ish resistance is the level to overcome if XLE really wants to fly, and I am anticipating a breakout this time around as the bulls are going to retry to breakout.
XLE Daily
LOOKING FOR A BREAKOUT
Technically, we’ve been in this consolidation since 2015, so about 3 – 4 years now; but remember, bigger the base bigger the move; and upon breakout, I am anticipating about 3 years of a primary-term bullish run. Currently XLE is holding and bounced off of the “50EMA” (red arrow on the right) as you can see in the chart below while holding the major pivot on my oscillator depicted on this chart (red arrow on the oscillator) which is very similar to 2011 and 2013 price action.
Upon breakout, I am anticipating a run witch the first target price of 100 and then possibly 120 being my ultimate target — to confirm the breakout, it must clear well-above the 80 – 81 and hold above it.
XLE Weekly
DISCLOSURE: I’ve been buying the dips (LEAPS) on XLE since the early February at 66ish and in early September at 72ish.
