Sunday, December 14, 2014

XLE Energy Weekly Chart Bear Market Territory

The energy sector is in collapse from the falling oil prices. XLE drops from 101 to 74, -27%, since summer time clearly in a bear market (down in excess of -20%). The histogram, stochastics and money flow positive divergence (green lines) are trying to stop the fall but the RSI and MACD line will want to see lower lows with price after any bounce occurs in this weekly time frame. XLE may be able to hold the line at 72-74. Keystone's 80/20 rule says 2's lead to 8's so if 72 ruptures, 68 will likely be on tap. The 72-ish is strong support from late 2012 and early 2013.

Price is under the 200-week MA at 76.34 a dire development and a back kiss would be expected to test the strength of this negativity. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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