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