XLE and other traditional cap-weighted energy ETFs are typically heavily allocated to Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX). Those stocks combine for over 37% of XLE’s roster.
“The XLE hit its most oversold level in four years in October as its relative strength index tumbled to 18. Any RSI reading below 30 typically suggests oversold conditions,” according to CNBC.
For more information on the oil market, visit our energy category.