Golden Cross with Energy ETF at Historic Levels
The SPDR Energy ETF had a historic selloff last year, but now it’s holding some key levels as an important chart pattern appears.
First, XLE spent the last two weeks of 2020 holding roughly $37.90. That was near the low from March 2009. Looking back even further, it’s also near a high from November 2004. That’s when crude oil began its major ramp toward $100.
Next, XLE’s 50-day simple moving average (SMA) rose above its 200-day SMA last week: a golden cross reversal pattern. It’s the first time the fast line has been over the slow line in more than 2-1/2 years.
The fundamental picture could also be improving as the Saudis hold OPEC+ in check. There are clearly risks to crude oil, but the current situation could be starting to resemble 2003 with a strengthening global economy and weakening dollar. Copper, gold and silver have already rallied. Will black gold follow and climb the wall of worry?
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
First, XLE spent the last two weeks of 2020 holding roughly $37.90. That was near the low from March 2009. Looking back even further, it’s also near a high from November 2004. That’s when crude oil began its major ramp toward $100.
Next, XLE’s 50-day simple moving average (SMA) rose above its 200-day SMA last week: a golden cross reversal pattern. It’s the first time the fast line has been over the slow line in more than 2-1/2 years.
The fundamental picture could also be improving as the Saudis hold OPEC+ in check. There are clearly risks to crude oil, but the current situation could be starting to resemble 2003 with a strengthening global economy and weakening dollar. Copper, gold and silver have already rallied. Will black gold follow and climb the wall of worry?
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.