"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 16 hours U.S. Money Market Funds Post Highest Outflows Since 2011
  • 17 hours Hedge Funds Turn Bearish On The Australian Dollar
  • 18 hours Tech Unicorns Are Taking Over European Stock Markets
  • 19 hours Trump Orders “Space Force” With Zero Support
  • 21 hours How Long Will The Gold Rout Last?
  • 23 hours The Wild Card In The New Eurozone Budget Agreement
  • 2 days Why Investors Must Look At Small-Cap Stocks
  • 2 days Banking Major Pays $42M For Misleading Customers
  • 2 days Rookie Daytrader Accidentally Makes $10 Million Profit
  • 2 days Flying Cars Are No Longer Science Fiction
  • 2 days The Internet Fights Back As EU's Controversial Copyright Bill Passes
  • 2 days Is Gold Preparing For A Reversal?
  • 2 days Tech Giants Under Fire For Facial Recognition
  • 3 days 4 Reasons Why Gold Investors Should Keep A Cool Head
  • 3 days Hackers Lift $30 Million In Crypto From South Korean Exchange
  • 3 days Tax Reform Could Push U.S. Profits Abroad
  • 3 days Pot Stocks Soar As Canada Legalizes Cannabis
  • 3 days How Chinese Investors Could Send The Tech Boom Into Overdrive
  • 3 days U.S. Market Growth Weighs On The Global Economy
  • 3 days The Trials And Tribulations Of A $4 Billion Blockchain
Stock Markets Open Lower On Renewed Trade War Fears

Stock Markets Open Lower On Renewed Trade War Fears

Stock markets opened lower on…

U.S. Market Growth Weighs On The Global Economy

U.S. Market Growth Weighs On The Global Economy

As the United States continues…

Oversold XLE into Seasonal Low

Oversold XLE into Seasonal Low

Technical observations of Ross.Clark@ChartWorks.ca
Originally sent to subscribers on February 11, 2018

We reported on the upside Exhaustion Alert in the big cap oils (XLE) on January 11th, anticipating a pullback into the normal seasonal low in February with the possibility of two legs to the downside. Prices continued higher for another ten days, but with bearish divergences in the money flow oscillators. Needless to say, the break has been more than normal. Downside Capitulation Alerts have been generated as of Friday. These follow a daily Sequential 9 Buy Setup. A 40% to 50% retracement of the decline, back to the 50-day moving averages within three to six weeks would be the normal action.

XLE

Seasonally, the XLE tends to bottom around the 20th of February and rally for eight weeks (profitable 14 of the 18 years). The most reliable moves have been when the price has been oversold in the preceding weeks. This year clearly offers that set of circumstances.

 

Opinions in this report are solely those of the author. The information herein was obtained from various sources; however, we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

 

Back to homepage

Leave a comment

Leave a comment