Saturday, October 18, 2014

Energy sector (XLE, KOL) short-term bounce

Oil sector stocks (XLE) had a big drop (-20%) with huge volumes, breaking down from an uptrend established since 2012.

Price bounced at around 80 and now is moving towards 90+/-2, where there is a strong resistance area(red circle).There XLE will probably reverse and resume its downtrend.If it breaks below 79 then next targets will be 73 and then 64$

Coal sector stocks (KOL) are in a long time downtrend since 2011 already -70% down from their highs.

KOL after consolidating for about a year between summer 2013 and late summer 2014, broke down and bounced at aprox 15,5.We believe that it will move towards 17 and then resume its downtrend.Possible final bottom for KOL at around 13$