Trading Idea: Entry Levels for Energy Select Sector SPDR

Published on Thursday, 01 November 2012 08:42 Written by TradersHuddle Wire

New York, November 1st (TradersHuddle.com) - Shares of Energy Select Sector SPDR (NYSE:XLE) are trading very close to calculated support at $71.02 with price action closing at just $71.94 and placing the stock near levels where traders will start paying attention.

Energy Select Sector SPDR (NYSE:XLE) is an ETF that seeks to provide investment results that correspond to the price and yield performance of the Energy Select Sector of the S&P 500 Index. Energy companies in the Index primarily develop and produce crude oil and natural gas, and provide drilling and other energy-related services. The Fund utilizes a passive or indexing investment approach to attempt to approximate the investment performance of the Index.

Traders wanting to establish a position should pay close attention to Energy Select Sector SPDR's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $77.35 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Energy Select Sector SPDR (NYSE:XLE) is an ETF that seeks to provide investment results that correspond to the price and yield performance of the Energy Select Sector of the S&P 500 Index. Energy companies in the Index primarily develop and produce crude oil and natural gas, and provide drilling and other energy-related services. The Fund utilizes a passive or indexing investment approach to attempt to approximate the investment performance of the Index.