What’s Moving in Energy? XLE Breaks Above the 200-Day Moving Average
What’s Moving in Energy? XLE Breaks Above the 200-Day Moving Average
Oct 1, 2024
Hello everyone, Barrie Einarson here, and today we’re diving into a key sector that’s making waves – the energy sector, with a particular focus on XLE, the major energy ETF.To Subscribe: https://go.trade-ideas.com/SHQ
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Now, if you’ve been with me in the pre-market sessions, you know I like to keep an eye on the major sectors, checking how they’re performing in relation to the 200-day moving average – that critical yellow line you often see on my charts. For a while now, XLE has been flirting with this level, either hovering slightly above or dipping below.
Yesterday, it was still below. But take a look at what’s happening today: XLE is back above the 200-day moving average. That’s a big move, and it caught my attention this morning, especially when I noticed several smaller oil companies like USEG and HUSA lighting up my momentum scan. But here’s the thing—it’s not just the little guys making moves today. The big names in oil are getting involved too.
Now, I hate to say it, but it seems the driving force behind these gains is the ongoing tensions in the Middle East. Geopolitical events like this tend to send oil prices climbing, and when that happens, we often see a ripple effect across the energy sector.
What’s worth watching here is whether XLE can close above that 200-day moving average by the end of the day. If it does, we’ll have all the major sectors trading above their 200-day moving averages, which is a bullish signal across the board.
So, keep an eye on this one. A close above this key level could signal further strength in energy stocks, and it’s something I’ll be monitoring closely as we move into tomorrow’s session.
Stay tuned, and as always, trade smart!