Today a solid chunk of evidence appeared that suggests energy has some room to run higher. Wednesday in general suggested that the market thinks the Fed will 'keep it easy' and not set the course for raising rates. Only time will tell, but here's a look at what i'm seeing.
This is XLE's strongest push over the 20 day moving average since the decline starting in May. It's also the healthiest momentum the group has seen almost all year. The chart action is speaking to us.
The obvious target here is 67.75-68 area.
Looking at the chart of WTI Crude Oil futures, we see a strong coil has built throughout the last week or so. This pattern appears ripe for continuation as all the short term moving averages are pointing higher. The main target to watch here is the 200 day moving average around 52.
Trade 'em well!
No comments:
Post a Comment