Sunday, September 14, 2008

Huge Volume in Energy ETF



Energy stocks have been selling off sharply since June but may be in the process of putting in a bottom.

In the above weekly chart of XLE (energy ETF) you'll notice that a support level is being tested. You'll also notice that XLE just broke a record for having its largest weekly volume since this ETF began trading.

I think the combination of price support and large volume is a sign that this ETF could be in the process of establishing a bottom. A move above last week's high would be quite bullish in my opinion.

2 comments:

Anonymous said...

I have been on oil for sometime now trying to trade it , but it appears to me to be a falling knife. Now that the hurricane is coming out of the price of oil I would personally feel we need to see capitulation in this sector prior to doing much of anything .

mj

Brad said...

Kevin,

Can you contact me when you get a chance, I'd like to see if we can start working together.

Best,
Brad
www.ino.com

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