What makes that trait important is companies like Exxon and Chevron have taken steps to conserve cash as oil prices remain well off recent highs. That could mean some energy industry consolidation is on the way. As some industry observers, it is usually during times of tumult for the sector that oil majors are born and get bigger.
“If two nested Cup-and–Handle patterns was not enough to get you excited, how about another one? The big red Cup and Handle finished forming last week. It is triggering now with the move out of the Handle. This one targets a move to 86,” according to Investing.com regarding XLE’s chart setup. “The Handle in this one pulled back to the 50- and 200-day SMAs before reversing. That Golden Cross itself is a bullish event too. Momentum held in the bullish zone on the pullback and the MACD is starting to level.”
Related: 4 Energy ETFs may be at Near-Term Tops
On Monday, crude oil strengthened after Goldman Sachs analysts Damien Courvalin and Jeffrey Currie said that a decline in production due to unexpected disruptions, along with sustained demand, have created a “sudden halt” to the output surplus, reports Serene Cheong for Bloomberg.
For more information on Energy ETFs, visit our Energy category.
Energy Select Sector SPDR
