Remember XLE Cup and Handle? Keep close eye at resistance
Unless WTI is all wrong look for XLE breakout
In one previous report on WTI Colonel Kink overlaid XLE and pointed out their correlation. In addition a cup and handle pattern was observed on XLE.
XLE is now pressed against resistance. Combining consecutive new 52-week highs printed by WTI guess where this is going. Note pennant pattern over recent few weeks.
This chart suggests continuation pattern over and over. Unless WTI rally is fake Colonel Kink will keep close eye for XLE action such as breakout.