It’s Time to Short Energy Stocks and Here’s Why

Νέα χαμηλά? Ας έρθουν…Εδώ θα είμαστε…!!!
November 12, 2017
Κάποιοι ψάχνουν την έξοδο…..
November 14, 2017

This week’s Chart​ ​of​ ​the​ ​Week​ features the XLE ETF (Energy Select Sector SPDR). We have seen XLE bounce off of its lows as oil rallied well above $55 over the last couple months. However, at this point in time, we are seeing a very bearish set up for the ETF. XLE closed the week at the top of a technical channel that we have seen dating back to July 2015, and we expect this to be the top right at $70. Additionally, we are utilizing a momentum study tool this week called the UltimateOscillator which has been accurate in portraying the previous three tops in for XLE. The previous three times XLE topped, we saw this Oscillator hit 0.6. After marking a top based on the Oscillator, we saw an average decline of 27.13% which leads us to our price target of $50.75 for this trade. To the downside, we watch the bottom end of the channel at $65, then the two downtrend lines we have indicated at $57.80 and $55.10. Overall, it appears that the energy sector has significant downside ahead and we see a great opportunity to short XLE right now.

Farewell and Trade Well,

Adam Kobeissi

Founder and Editor-in-Chief

For more content like this, click here to subscribe to The Kobeissi Letter which has provided 64% in profit on trade recommendations over a one year time period.

The Kobeissi Letter
The Kobeissi Letter
The Kobeissi Letter is a weekly commentary on the global capital markets. Over a one year time period, TKL's recommendations have provided over 64% in profit. Subscribe now and receive our analysis: https://goo.gl/vkkDgD