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December 9, 2024 XLE

TKL Chart of the Week

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George Gougoulidis
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18 views

December 9, 2024 XLE

TKL Chart of the Week

Uploaded by

George Gougoulidis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Chart of the Week

me Week of December 9th, 2024

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In this week’s Chart of the Week, we take a look at the S&P 500 Energy Sector ETF (XLE)
as oil markets have traded in volatility over the last few weeks and the ETF appears to be setting up
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for another major higher low. As outlined in the chart above, XLE has traded in a series of price
channels this year, trading in an upward trending channel since the September 11th low, at $83.02.
On November 25th, the top end of that channel was tested and rejected, at $98.00, which opened for
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the most recent pullback that has since led into the bottom end of the channel, at $91.00.
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Furthermore, the daily RSI retreated from 70+ overbought territory into long-term uptrend support, at
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~38. Since then, the daily bottom Bollinger Band has been crossed, at $91.71, and all major technical
indicators are suggesting that a bottom is forming. The last three times we saw the daily RSI fall into
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this uptrend with a cross below the daily bottom Bollinger Band, XLE formed a major bottom.
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Looking ahead, we expect support in the $90.00 to $91.00 demand area to form the next higher low,
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following the $87.65 bottom seen in late-October. From there, we believe a move back toward the
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top end of the channel can come next, at $98.00, putting XLE on track for a higher high. Therefore,
as long as XLE remains above $87.65, we believe the trend is pointing upward.

Farewell and Trade Well,


The Kobeissi Letter Team
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