Amid contracting earnings, a spate of negative dividend actions and massive capital spending reductions, the energy sector is still unattractive in the eyes of some market observers.

Concerns over Chinese oil demand also pressured prices. China revealed that its service activity expanded at a slower-than-expected pace, which has fueled pessimism over a potential slowdown in the second largest oil-consuming country in the world. [China ETFs Suffer New Year Hangover ]

“Looking at a stand-alone chart of the energy ETF, Gordon noted that the XLE has rallied to a critical point of resistance. To find this resistance, Gordon measured the distance that the XLE traveled from its previous low to high and projected it to the current move, which resulted in near-perfect symmetry,” according to CNBC.

Energy Select Sector SPDR