Below looks at the performance of the S&P 500 Sectors, looking back 5-years. The winner for the lowest performance is the Energy Sector (-1.42%). XLE is lagging the S&P 500 by almost 70%, in just 5-years. “Time for them to rally?
CLICK ON CHART TO ENLARGE
Below looks at the Energy ETF (XLE)/S&P 500 ratio over the past 17-years and why we find this pattern worth looking closer into.
CLICK ON CHART TO ENLARGE
The pattern above presents a nice entry point, with a stop below the support test at (2). Another test of support in this space is taking place in the UGA chart below.
CLICK ON CHART TO ENLARGE
From a long-term trend perspective, no doubt the trend in both of the charts above is down (lower highs and lower lows and below long-term moving averages). If one is a trend follower, we doubt these ideas are of interest to you.
If one likes to buy low in hard hit sectors with tight stop loss parameters, we find both of these charts very interesting at this time, due to being out of favor and testing key support levels.
If you would like to test drive all of our research for 30 days, send us an email and we’ll get you the details.
Blog: http://ift.tt/2nMNRyT
Get our daily research posts delivered to your inbox here
Website: KIMBLECHARTINGSOLUTIONS.COM
Questions: Email services@kimblechartingsolutions.com or call us toll free 877-721-7217 international 714-941-9381
via http://ift.tt/2nzCIT2 kimblecharting