The ERY long/XLE short trade exceeded the suggested stop by 5 cents yesterday on a just this one 60 minute candlestick close, which was the 2nd to last candle of the day & the only 60-minute stick to close below 19.55 yesterday. A stop is a stop & as such, ERY has been moved the Completed Trades category with a 6.1% loss on ERY & about a 2% loss on XLE. Previous & updated 60-minute charts: I also wanted to share my thoughts on the broad market. Not that I'm pulling a hard 180 but at least until we [...]
The following charts of XLE & ERY show suggested entry levels, price targets & suggested stops for a trade in the energy sector.
USO is catching a bid in pre-market trading today (not reflected here) but with solid divergences in place beneath this rising wedge pattern, my expectation remains that crude is likely to experience at least one more multi-week+ thrust lower before a solid & sustained breakout above the 20.20ish key resistance level. Naturally, the energy related stocks move in tandem with crude prices. At best, my take would be for a brief blow-off top (blue lines) that would be caused by a false upside breakout in crude prices although I still favor a downside resolution of this rising wedge pattern in XLE [...]