Welcome to Extreme Investor Network, where we provide you with unique insights and valuable information to help you navigate the world of investing. Today, we are talking about the recent relief rally in crude oil prices and its impact on energy stocks.
The positive short-term momentum shift behind energy stocks is a result of the recent rally in crude oil prices. WTI crude oil futures have cleared their 50-day moving average, and energy sector benchmarks are showing positive technical catalysts such as MACD “buy” signals. This shift is particularly notable for the Energy Select Sector SPDR (XLE), which has cleared short-term resistance from the daily cloud model, indicating potential upside in the near future.
XLE’s rally has reversed a five-month downtrend and successfully tested long-term support from the rising weekly cloud model. The breakout in XLE could be a game-changer for the sector, especially considering that Exxon Mobil (XOM) accounts for about 23% of the fund’s weighting. XOM has cleared long-term resistance near $120, paving the way for a potential breakout with a technical price objective of $136 based on a measured move projection.
However, it is essential to consider the risks associated with trading energy stocks, especially with geopolitical tensions that could affect the price of crude oil. Managing risk through stop-loss discipline or hedging strategies is crucial in volatile markets like these.
At Extreme Investor Network, we provide expert analysis and insights to help you make informed investment decisions. Stay informed, stay ahead of the trends, and join our network of extreme investors today.
For more expert insights and research, visit our partners at Fairlead Strategies for free resources.
Remember, the information provided is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Before making any financial decisions, seek advice from your own financial or investment advisor. Stay tuned to Extreme Investor Network for more updates and valuable insights.