XLE - Energy Sector About to Poop Itself or No?
The energy sector has been performing badly over recent months, but not as bad as basic materials sector. Specifically leading the problem in the energy sector are oil & gas drilling, oil & gas exploration and production, oil & gas refining and marketing, oil-related service and equipment, renewable energy equipment & services, and uranium industries. These industries are making new lows over the past month and over the past quarter.
It is quite early, but this should be on the radar for a potential shorting opportunity. If truly the beginning of a downward move, a further break of the support level around $72 would be a confirmation, and this should be expected within the next 2-4 months (pretty much from October - December, or even January). Also, the idea of the downtrend could potentially be a recovery for a possible uptrend if the resistance levels around $76 and $78 are tested and broken.
The financial sector was also showing some milder weakness but more time is needed to tell how the sector is behaving. Watch the energy sector; what do you guys think?
It is quite early, but this should be on the radar for a potential shorting opportunity. If truly the beginning of a downward move, a further break of the support level around $72 would be a confirmation, and this should be expected within the next 2-4 months (pretty much from October - December, or even January). Also, the idea of the downtrend could potentially be a recovery for a possible uptrend if the resistance levels around $76 and $78 are tested and broken.
The financial sector was also showing some milder weakness but more time is needed to tell how the sector is behaving. Watch the energy sector; what do you guys think?
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