The largest energy sector ETF jumped more than 2% on Wednesday as the fund tries to recover after falling to the lowest levels since October 2011 on plunging oil prices.

The $6.1 billion Energy Select Sector SPDR (NYSEArca: XLE) was up 2.2% late Wednesday as crude oil prices climbed back above $80 a barrel.

Technical analyst Tarquin Coe at Investors Intelligence said the energy ETF was outperforming the market Wednesday as it attempts to bounce from support at the June 4 low. [Jim Rogers: Commodity ETFs to Rise on Supply Shortages]

On-balance volume and relative strength indicators are “showing slight bullish divergence with the recent test of the June price low,” he said in a newsletter.

“A double-bottom may be forming and that would be confirmed on a break above the neckline at $66.50 [a share],” Coe wrote. “Clearing that level would also break the four month downtrend. The sector is beaten up and a recovery is overdue.”

XLE was down about 14% for the trailing three months heading into Wednesday’s trade. [Oil ETF Falls 30% from 2012 High]

Energy Select Sector SPDR

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