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

INO 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

Money-Making Ideas

DISCLAIMER

This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
 
Google
Technorati Profile Finance Blogs - Blog Top Sites