The energy sector is just one of two S&P 500 sectors that currently trades at a noticeable discount to its long-term averages.

Additionally, the energy sector is usually among one of the largest sector weights in value ETFs, underscoring the point that the group is attractively valued relative to some defensive sectors, which trade at lofty multiples.

“The reversal is even more important because it happened at both short-term support from several weeks ago and long-term support going back to big turning points in 2014 and 2015. It also negated a breakdown below the trendline drawn from the start of the bull run one year ago. All that is left is a move above the short-term line drawn from this past December’s peak to give the bulls a high-confidence green light,” according to Barron’s.

For more information on the energy sector, visit our energy category.