Energy ETF Could Have 20% Upside (XLE)

From Chris Kimble: examines the long-term chart of a popular energy ETF and finds the potential for more gains.

Energy ETF (XLE) has struggled to get above the $80 level while creating a series of higher lows over the past 18-months. This price action could be creating a bullish ascending triangle pattern.

The top of the pattern comes into play at the resistance line (1).

If the resistance line (1) is taken out, a “measured move” calculation suggests it could rally up to the $95 zone, which is more than 20% above current prices.

If XLE breaks out, it should attract buyers!

The Energy Select Sector SPDR ETF (XLE) was unchanged in premarket trading Wednesday. Year-to-date, XLE has gained 6.04%, versus a 7.44% rise in the benchmark S&P 500 index during the same period.

XLE currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 38 ETFs in the Energy Equities ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.