A Critical Juncture for a Big Energy ETF

Over the past month, Kinder Morgan (NYSE: KMI) is the only of XLE’s top-10 holdings, a group that combines for over 60% of the ETF’s weight, that has traded higher.

“A break of the October lows, and we may see more downside to the next level of support at 75. A bounce off these levels would look to close the recent gap up to $85.30.   With its 200D-SMA at $91.67 , it is far from getting back into a longer term uptrend,” adds Chojnacki.

Energy Select Sector SPDR

Chart Courtesy: David Chojnacki, Street One Financial