Will the Energy SPDR Resume its Climb?
by Sam Collins 03/26/08
The Energy Select Sector SPDR Fund (XLE) -- This index fund, which seeks to replicate the total return of the Energy Select Sector Index of the Standard & Poor's 500 Composite Stock Index (S&P 500 Index), has been in a bull market since late 2003. Since then, it has more than tripled.
Only recently, when oil stocks succumbed to some profit-taking, did the index fall below its 200-day moving average. It is currently trading within a triangle, with near-term support just under $70 and resistance at $76.
The stochastic indicator is now flashing a buy signal, but the overall chart formation is somewhat "toppy." And, if the XLE were to break below $63, the bull market would be over.
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