How to Play the Setup in Energy Select Sector SPDR
Published on Thursday, 08 November 2012 08:42 Written by TradersHuddle Wire
New York, November 8th (TradersHuddle.com) - Energy Select Sector SPDR (NYSE:XLE) closed the trading day at $70.85, near its 50 day and 200 day moving averages set at $73.15 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 $73.15. 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.
- Microsoft announces quarterly dividend increase and share repurchase program
- Shell Brazil chooses Windows Phone to lower costs and increase employee productivity
- Banks put customers first with Microsoft Dynamics CRM
- Bing.com and FOX News team up to bring real-time online polling to nightly news; Bing Pulse featured on "Special Report with Bret Baier"
- Industry partners showcase new financial services apps for Windows 8 and Windows Phone 8
- Microsoft launches worldwide Office 365 donation program for nonprofits
- InvestorsObserver releases comments on Microsoft, Toyota, Kroger, Sears Holdings, and Men's Wearhouse
- Microsoft launches Xbox Music across iOS and Android, adds free streaming on the Web
- NI Technology Research Updates Outlooks for Ciena, Finisar, Microsoft and Nokia
- Microsoft to acquire Nokia's Devices & Services business, license Nokia's patents and mapping services
Related Partner Headlines
Recent Trading Ideas
Latest Partner Headlines