XLE Energy Daily Chart Falling Wedge Positive Divergence Bounce Gaps ISM Trade

XLE energy shows positive divergence and a falling wedge in this daily time frame so a bounce will occur. The weekly chart is weak and bleak, however, so the bounce will simply be a rest in the selling action that should then resume and continue thru the summer. The upward-rising 200 MA should serve as support in this near term so the bounce will occur now, or at the very worst, from the 69-70 gap fill areas.

A weak Monday start would open energy up as a nice quickie long play, many ways to play it including XLE, ERX, the triple bull, other ETF's, and individual energy and integrated stocks. Energy is in a trend that moves up at the end of the month into the ISM manufacturing number, which is Friday. Thus, the potential trade is entering long early week, on a potential dip, or from right here, and then selling on Friday or Tuesday of next week. The BPENER is positively diverged as well verifying the coming pop. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.