The XLE ETF has found balance at a long term volume point of control, and looks to be on track to become buyer controlled. We can see that the group broke back above its longer term downtrend line in mid September, and has been consolidating at POC for about the last 30 days.
My timing with this particular group hasn’t been stellar. I’ve been really early (wrong) and then early again, (wrong again). This time though I am noticing that the XLE has continued to rotate closer towards the “Leading” Quadrant in the weekly RRG, exhibiting strength relative to the SPX:
If you haven’t already, start looking at the industry and look to add some exposure if you have been underweight as I have. I’ll be doing a deep dive into all things energy this week and will update on those that I feel are the most actionable in the near term.
Thank God It’s Monday!
OC