Is Energy Select Sector SPDR Setting for a Break Out?

xle New York, November 2nd (TradersHuddle.com) - Energy Select Sector SPDR (NYSE:XLE) closed the trading day at $72.25, near its 50 day and 200 day moving averages set at $73.19 and $70.51 respectively. Energy Select Sector SPDR's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.

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.

Energy Select Sector SPDR seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in Energy Select Sector SPDR and wait for the stock to break out above its 50 day moving average at $73.19. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $70.51 breaks, it could signal further downside pressure for Energy Select Sector SPDR.

TradersHuddle Search

Stock Search:


Site Search:

Loading

Technical Scans

Recent Trading Ideas

Latest Partner Headlines

Stock Market

Loading
Chart
o Dow Jones 16,408.54 ▼16.31 (-0.10%)
o S&P 500 1,864.85 ▲2.54 (0.14%)
o NASDAQ 4,095.52 ▲9.29 (0.23%)
INDEXDJX:.DJI

Dow Jones

Company ID [INDEXDJX:.DJI] Last trade:16,408.54 Trade time:4:31PM EDT Value change:▼16.31 (-0.10%)
INDEXSP:.INX

S&P 500

Company ID [INDEXSP:.INX] Last trade:1,864.85 Trade time:4:31PM EDT Value change:▲2.54 (0.14%)
INDEXNASDAQ:.IXIC

NASDAQ

Company ID [INDEXNASDAQ:.IXIC] Last trade:4,095.52 Trade time:5:15PM EDT Value change:▲9.29 (0.23%)

In The Wires

Copyright © 2013 TradersHuddle.com. All Rights Reserved.