The Energy sector (XLE) is on fire lately, gaining 10% in the past 8 sessions. Long-term overhead resistance at $58. Watch for signs of exhaustion.
The daily chart formed an nr-7 hanging man, with an exhaustion-type gap.Added overhead resistance in the form of an upper keltner channel and momentum topping out.Top holdings in XLE that particularly look weak include; DVN, APA, XTO. These three issues sold off of their highs today and were never able to challenge those highs for the rest of the afternoon.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
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