The SPDR Select Sector Energy ETF has been plagued by some long-term negatives, but some traders may see those issues becoming more positive.
Today’s idea uses two-week candles to give a long-term view. The first key pattern is the 2023 low of $75.36, which XLE tested and held during last month’s tariff panic. That may suggest support is in place.
Second, the bounce occurred around the peaks of 2016 and 2018. Has old resistance become new support?
Third, XLE is still below the $101.52 level where it topped 11 years ago. That makes it the only SPDR sector fund that hasn’t made a new record high this decade.
Next, XLE is also the only SPDR fund with a single-digit price/earnings ratio (according to VettaFi).
Those last two points reflect the kind of negativity overshadowing the sector for years. But, the ESG trend may have reached its peak. There’s also been a flood of bad news, including fears of tariff-induced recessions and OPEC’s unexpected supply increase.
Now some people may expect the pendulum to swing the other way as U.S.-China tensions ease. That could make some investors wonder whether XLE’s long-term neutrality and lower multiples represent value opportunities. That could be especially true with the Federal Reserve leaning more hawkish and yields inching higher.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Energy ETF (XLE)
1-year: -13.92%
5-years: +111.84%
10-year: -0.48%
(As of April 30, 2025)
Exchange Traded Funds ("ETFs") are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
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Today’s idea uses two-week candles to give a long-term view. The first key pattern is the 2023 low of $75.36, which XLE tested and held during last month’s tariff panic. That may suggest support is in place.
Second, the bounce occurred around the peaks of 2016 and 2018. Has old resistance become new support?
Third, XLE is still below the $101.52 level where it topped 11 years ago. That makes it the only SPDR sector fund that hasn’t made a new record high this decade.
Next, XLE is also the only SPDR fund with a single-digit price/earnings ratio (according to VettaFi).
Those last two points reflect the kind of negativity overshadowing the sector for years. But, the ESG trend may have reached its peak. There’s also been a flood of bad news, including fears of tariff-induced recessions and OPEC’s unexpected supply increase.
Now some people may expect the pendulum to swing the other way as U.S.-China tensions ease. That could make some investors wonder whether XLE’s long-term neutrality and lower multiples represent value opportunities. That could be especially true with the Federal Reserve leaning more hawkish and yields inching higher.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Energy ETF (XLE)
1-year: -13.92%
5-years: +111.84%
10-year: -0.48%
(As of April 30, 2025)
Exchange Traded Funds ("ETFs") are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.