Looking at the charts from several companies, one would see that energy has been beaten down since september of last year. XLE Energy Select Sector SPDR Fund went from a high of 93$ per share 80$. The majority of its main holdings paint a similar story just look at the charts of XOM and CVE.
Recently those two last mentioned stocks have generated a buy signal according to our systems. It can be argued that perhaps this resurgence of this sector is caused by rotation. Investors are hedging their bets against all time highs from Technology.
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One must also look at the geopolitical situation in the middle-east. The situation overall in that region is unstable with hoothies rebels putting in danger the cargo ships in the red sea as well as attacks on US infrastructure in the region.Â
Going to the charts, XOM is approaching a key level at 108$. Anything above and its up to the races. In the case of CVE, currently at 16.30$, its support level is at 18$. Those two representing an interesting buying opportunity for short term.
