Don't Ignore This Chart!

Schlumberger Ends Downtrend, Now Looks To Confirm Price Breakout

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The energy ETF (XLE) has been blistering hot this week and today its three largest holdings - Exxon Mobil (XOM at 23%), Chevron Corp (CVX at 17%) and Schlumberger (SLB at 7%) - all had some form of a breakout.  XOM surged to its highest close since January.  CVX closed at its all-time high.  And finally, SLB broke a serious downtrend and looks to clear overhead price resistance.  Check out SLB's chart:

Look for a bit of hesitation as SLB approaches the 69.50 area, but accumulation appears to be taking place as SLB has risen over the past couple months with volume on the rise.  A confirmed close above that level would send a third major component of the XLE into breakout territory and all looking at higher prices down the road.

I look for the XLE to continue its trend higher into 2018.

Happy trading!

Tom 

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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