It Might Be Time To Get Back Into Energy
We have been cautious and calling for a pullback in energy stocks for a couple of weeks. Like clockwork, a 3-5% correction in the majority of energy names has since come to fruition. However, it might be time to begin adding to positions in XLE names once again:
The $79 level is an important level of interest in XLE – one near which investors should begin thinking about adding to long positions. In addition, the rising 50-day simple moving average and 38.2% Fibonacci retracement of the January-May advance add confluence to an already important support/resistance level.
Moreover, crude oil seasonality continues to offer a tailwind through mid-September: