With a 10+ percent advance the last 11-12 weeks, the Energy SPDR (XLE) is trading near the upper trendline of a broadening formation. The swing within this formation is up as XLE remains above the green trendline and Williams %R remains in overbought territory. A trendline break and move below -20 in %R would provide the first signs of a pullback.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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