XLE BO:bottom@66,Support@76, next stops are 90/98/107
BULLISH CASE: XLE held a June low @66 which is a 0.618 retracement. It formed a triangle & has since bounced off the base very strongly with 2 gap-ups. Moving averages 50, 100 & 200 are forming a ribbon & are all pointing up. 76 is a strong support with volume profile.
If this breakout from the triangle sees a follow-thru in the next few days, XLE may double the triangle & target the next 2 Fib levels at 98 & 107 with some consolidation at the recent ATH at 90.
Crude oil & Natural gas bouncing strongly.
10-yr rate TNX & dollar index DXY turns up & are also bouncing higher.
BEARISH CASE: If this will be a false breakout, then the 2 recent up-gaps will be filled with XLE going back inside the triangle.
Not trading advice
If this breakout from the triangle sees a follow-thru in the next few days, XLE may double the triangle & target the next 2 Fib levels at 98 & 107 with some consolidation at the recent ATH at 90.
Crude oil & Natural gas bouncing strongly.
10-yr rate TNX & dollar index DXY turns up & are also bouncing higher.
BEARISH CASE: If this will be a false breakout, then the 2 recent up-gaps will be filled with XLE going back inside the triangle.
Not trading advice