With earnings season here, investors should keep an eye on XLE and rival energy ETFs. The energy sector could deliver an operating EPS loss over Q1 for the first time this century. While crude oil prices plunged over the past year, energy producers still managed to eke out positive gains in prior quarters.
“On the weekly XLE chart, price is pressing up against some key bearish trendlines. There were some bullish weekly momentum divergences at the recent lows, so I think XLE busts through these pieces of resistance and aids energy stocks in general. An initial 38.2% retracement of the entire bear market sits up in the 67/68 area and is also a potential targeted level,” said See It Market.
United States Oil Fund
