Error
  • JLIB_APPLICATION_ERROR_COMPONENT_NOT_LOADING
  • JLIB_APPLICATION_ERROR_COMPONENT_NOT_LOADING
  • Error loading component: com_content, 1
  • Error loading component: com_content, 1
  • Error loading component: com_content, 1

xle New York, December 5th (TradersHuddle.com) - Energy Select Sector SPDR (NYSE:XLE) closed the trading day at $70.41, near its 50 day and 200 day moving averages set at $72.01 and $70.28 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 $72.01. 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 $70.28 breaks, it could signal further downside pressure for Energy Select Sector SPDR.

Technical Scans

Stock Market

Loading
Chart
o Dow Jones 18,232.02 ▼53.72 (-0.29%)
o S&P 500 2,126.06 ▼4.76 (-0.22%)
o NASDAQ 5,089.36 (%)
INDEXDJX:.DJI

Dow Jones

Company ID [INDEXDJX:.DJI] Last trade:18,232.02 Trade time:4:32PM EDT Value change:▼53.72 (-0.29%)
INDEXSP:.INX

S&P 500

Company ID [INDEXSP:.INX] Last trade:2,126.06 Trade time:4:32PM EDT Value change:▼4.76 (-0.22%)
INDEXNASDAQ:.IXIC

NASDAQ

Company ID [INDEXNASDAQ:.IXIC] Last trade:5,089.36 Trade time:5:15PM EDT Value change: (%)

In The Wires

Copyright © 2013 TradersHuddle.com. All Rights Reserved.