Lots of Energy in Energy

• Posted by Greg Harmon
• on May 13th, 2016

The Energy Select Sector ETF ($XLE) has had a great 2016. From the mid January bottom it has risen over 30%. In early April I wrote about the nested Cup and Handle Patterns and took an intermediate term position for clients and family. Since then it has added nearly 10%. But a lot more has happened.

If two nested Cup and Handle Patterns was not enough to get you excited how about another one. The big red Cup and Handle finished forming last week. It is triggering now with the move out of the Handle. This one targets a move to 86.

The Handle in this one pulled back to the 50 and 200 day SMA’s before reversing. That Golden Cross itself is a bullish event too. Momentum held in the bullish zone on the pullback, and the MACD is starting to level.

If you are still not holding the Energy ETF what are you waiting for? There is a ton of energy in Energy.

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