XLE - true breakout or fakeout?
Oil has been ripping lately and trying to establish a new consolidation range. Keep in mind this rally in energy has occurred as the DXY has had 9 weeks of consecutive upside.
The energy sector has been a bullish piece of the market and is at a critical support level.
If this breakout in XLE is to hold we could see some significant upside.
A weekly & daily breakout has been confirmed but when you zoom out to the monthly chart this could be signalling a failed Double top reversal.
Seeing how XLE closes the monthly candle will be telling for the market as oil has been the main increase in the CPI and inflation expectations.
The energy sector has been a bullish piece of the market and is at a critical support level.
If this breakout in XLE is to hold we could see some significant upside.
A weekly & daily breakout has been confirmed but when you zoom out to the monthly chart this could be signalling a failed Double top reversal.
Seeing how XLE closes the monthly candle will be telling for the market as oil has been the main increase in the CPI and inflation expectations.