Energy Sector Rally! New Micro Trend beginningHey Traders, We have a nice double bottom on XLE with a Strong Bullish Candle! I tried to get this out as soon as possible however I do believe there is still time for entry if this meets your rules and criteria for entry.
Reasons for Entry:
1) We have a double bottom at previous structure support.
2) We have a strong bullish engulfing candle.
3) Price has been trading below the 20 period moving average for the last week or so and has finally broken through it and retested it again as support.
4) Price has been trading on the lower Bollinger band since this down move began and this shows that the sellers were strong but now something has changed. Price is no longer riding the lower Bollinger band but instead is approaching the top band with an increase in volatility. This is a good indication that a new trend is likely to begin (check out chart below for a further explanation).
Entry- $68.00
Target 1- $68.65
Target 2- $69.20
I may trail stops for target 2 depending on the strength in this move. I will be sure to keep this idea updated. Please feel free to comment below with any questions regarding the setup or to share your analysis. Thanks Traders and good luck Trading!
