27Mar2:55 pmEST

Not Assuming Anything; Chess Moves

I went long ERY at $20.97 with a protective stop-loss below $20, playing for the energy sector bear market to resume via this triple-bear ETF. 

Many traders and value seekers seem to be assuming that crude and energy stocks have bottomed. As I have stated before, a long, sloppy, sideways range for crude and the XLE (energy sector ETF from which ERY is derived) energy stocks would not surprise. 

However, with that XLE sporting a declining 200-day moving average well above spot price, seen on the daily chart below. Therefore, the highlighted bear pennant has a good chance of resolving lower.

In addition, the action in crude oil itself today smacks of a potential bear market rollover after the recent rally.  


Update on My Positions Choose Those Fights Carefull...

 
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