XLE – DXY demonstates negative correlation i.e. that major episodes of XLE strengthening happens when DXY is falling and vice versa.
7 long term stock charts from 3 countries for mid to long term investors. EEM, XLRE, XLE, XLU, OCBC (O39.si), SPH (T39.si) and TVB (511.hk).
Is it time for some energy-driven inflation? Will an energy sector recovery become new driver of bull market to relieve FANG stocks? WTI has broken decisively above 3-year high, XLE is at decade long support, there is a bullish expansion over March and XLE is 5-day best performer among S&P500 sectors.
EEM, an iShares MSCI Emerging Markets ETF, complies very well with technical analysis levels as we can make 4 observations based on this chart. Based on price action, a 2018 top may or may not be in but traders will have to incorporate this resistance
XLP retains it’s status as a leading bear sector in the US market. At the moment, moving averages, price action and chart pattern paint a bearish reversal setup. 1) Moving average dead cross. 2) Bearish expansion in January terminates last 4 quarters of higher lows. 3) Fallen out of equidistant channel.
EEM ETF has spent the last 3 months above a prominent 6-year resistance. This could be a sustainable development. At face value, I feel it is more attractive than stocks in countries that are only driven by financial expansion.
XLP fell out of a 9-year trend line after printing a Head and Shoulders bearish reversal pattern. This could be a real break. XLP and XLRE are leading indicators of stock market bearishness.