Thursday, August 4, 2016

XLE: A huge Inverted Head and Shoulders

Back in May we suggested that "Bulls need to see XLE breaking above 67 (even temporarily) towards the resistance zone of 71-74.In this case the formation of an Inverted Head and Shoulders formation is very possible, leading XLE much higher"(Energy sector (XLE): Make it or Break it!)

As we can clearly see from the following chart XLE since May touched 70+ and then retraced.Also volume recently started to pick up.We stay with our view for a huge Inverted Head and Shoulder formation for XLE and our current preferred pathway is as follows:

Happy trading!