Is it time for some energy-driven inflation? 3 charts of WTI, XLE
Is it time for some energy-driven inflation? Will an energy sector recovery become new driver of bull market to relieve FANG stocks?
Chart #1 – WTI monthly chart 2011 – present
- WTI now at new 52-week high.
- Above previous 3-year resistance set in 2015.
- Since we have run out of potential resistance, target levels from 2015 – 2017, next major top going back 1 year earlier to 2014 is 107.65.
- Sure or not? Some will ask. That much? Few believed WTI will hit sub-30 back in 2014 either.
Chart #2 – XLE decade-long trend line going back to 2002
This I pin here for reference.
Chart #3 – XLE weekly chart from mid-2015
Even without the decade-long trend line from the chart above, this 3-year chart of XLE shows equal merit. Price is now at 9-week high with a bullish expansion above March. February drop terminated and reversed?
Will an energy sector recovery become new driver of bull market to relieve FANG stocks?
In this S&P500 sector heatmap by SectorSPDR, XLE is the best 5-day performer.