The Energy sector has shown incredible strength during the market selloff as investors seek dividend paying stocks in a stage where rate hikes are inevitable. Historical data shows that energy sector outperforms in an economy with raising rates and this time is no different. With EPS around the corner for 
XLE biggest holdings (
XOM, 
CVX and 
OXY), best case scenario would be an increase in dividend which should send investors running towards these names.
The technical side of this trade shows an strong uptrend with 52 week highs as the indices trade in a correction. If we look at the MACD, fairly bullish breakout and above resistance with room to run and thanks to the recent selloff, the RSI has restarted on longer time frames.
Targets forXLE are 67, 72, and 76.
OptionsSwing Analyst
Daniel Betancourt
XLE biggest holdings (XOM, CVX and OXY), best case scenario would be an increase in dividend which should send investors running towards these names. The technical side of this trade shows an strong uptrend with 52 week highs as the indices trade in a correction. If we look at the MACD, fairly bullish breakout and above resistance with room to run and thanks to the recent selloff, the RSI has restarted on longer time frames.
Targets for
XLE are 67, 72, and 76. OptionsSwing Analyst
Daniel Betancourt
Note
First Target of 67 hit! XOM Earnings was a blowout taking the entire sector with it.Note
Good consolidation after a big move here. CPI numbers showing demand for Oil is not slowing down despite the rising prices. Less supply, higher demand; crude oil price will most likely leg up again.
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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.
Education first, profits second.
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.