In a previous post, Sweet $XLE Setup, I provided a potential setup that was developing on the $XLE (SPDRs Select Sector Energy ETF). This post is a follow-up which I think you may find intriguing.
Please refer to the chart below (which has only been updated with price bars – original notes remain):
As you can see, the retest of the recent high around $69 has failed (so far), and it appears it may easily roll over from here.
I will be entering a short position on $XLE if it trades below $66, and I will use a stop loss in the $67.6-ish area. You can see from the chart my price target is the somewhere in the $57’s by the end of July.
Food for thought…
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