Buy Energy ... Sort of
Buy energy? Buying energy here seems like a rotational play to me -- but not coal, not yet. Not steel, either. I know this isn't energy per se, but some folks may want to lump it in or include it in some kind of energy basket. Just say no. These still look like second half plays to me. We aren't there yet.
Energy Select Sector SPDR (XLE) Source: StockCharts.com View Chart » View in New Window »I have been, and still am, a natural gas fan, but one can expand his or her focus in the energy space. The most common approach is going to be the Energy Select Sector SPDR (XLE). Overall, this is an attractive chart. Price seems to be breaking out from an ascending triangle. Although there is a longer line of resistance just above the breakout, the trend line has so much trading far beneath (lots of empty air) that I don't really view it as significant resistance. The one concern is the weaker relative strength indicator (RSI), although there is strength in the stochastics. It is bullish, but not very strong....140 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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