$XLE

XLE is set to outperform the S&P 500 due to a completed bottom formation and breakout, with improving relative strength.

BullishHe framed it in weeks
“The Sector Rotation Just Changed. Here’s What’s Leading”
StockCharts TVPublished Aug 24 · 4 passages
16:09/ —Open the source video

Jump to any passage

4 passages

Then, let's go to energy. I think that's also a very interesting sector and um I'm going to make a I'm going to try to make an interesting move here cuz this obviously still inside the lagging quadrant.

But, it's really improving rapidly. I think this is probably the longest tail because it's also a lot longer than materials. Longest tail, so picking up momentum rapidly. But also, when you look at the price chart, which we will do in a minute, actually is actually doing really well.

So, I'm going to make this an outperformer. I'm going to label this a green sector because I do feel that it is actually rapidly improving and also the combination with the price chart and the daily RRG, I think has all the ingredients to move faster and outperform the S&P 500.

It made might also be a reason to jump ahead a little bit. But, taking my chances here cuz I really think that energy sector is is in a good spot. It's in a good space.

I feel a lot more comfortable putting energy on an outperformance outlook cuz that sector is a lot smaller so the impact if I have it wrong the impact on the portfolio as a whole is a lot less.

And that allows for a little bit more wiggle room to play with as a position in your portfolio.

And then here is energy. So, this is the This is If you want to call it my bet, this is my bet. It's still inside the lagging quadrant, as you saw, but the RS momentum line is picking up, RS ratio is leveling off, starting to pick up.

I think this is an important move because this looks like a bottom formation is being completed, and this is absolutely the confirmation. We had Last week, we had the break out of this consolidation flag-like consolidation, and now this week we're breaking above that previous high, and that's the That's a new confirmation.

So, if you want to call it a signal, this is a new buy signal for the energy sector, and that's why I feel pretty comfortable, based on this price move, to to put it on a relative outperformance because I think that this I could be wrong, but I think this is a good sign.

We're taking out resistance here. That opens up a lot of upside potential, and that will undoubtedly work its way through into the relative strength outlook for the energy sector.

And then there's energy. It's still inside the lagging quadrant, but it's really improving rapidly. I think this is probably the longest tail because it's also a lot longer than materials.

Longest tail, so picking up momentum rapidly. But also, when you look at the price chart, which we will do in a minute, actually is actually doing really well. So, I'm going to make this an outperformer.

I'm going to label this a green sector because I do feel that it is actually rapidly improving and also the combination with the price chart and the daily RRG, I think has all the ingredients to move faster and outperform the S&P 500.

It made might also be a reason to jump ahead a little bit. But, taking my chances here cuz I really think that energy sector is is in a good spot. It's in a good space.

What this channel has said about $XLE

StockCharts TV has 2 calls on this stock; only the adjacent ones are shown.

2026-09-23
Exxon Mobil continues to make headlines because of crude oil and the war. So, looking at this in the short term first, it's very similar, isn't it? As you know, we have seen the beginning of the rise recently. In fact, the index crossed the 20-day moving average and remained relatively above it until Monday when it fell below it. This coincided with a similar decline in the Relative Strength Index (RSI) to what happened here. Clearly, the upward trend since the beginning of 2026 has been more pronounced, but when the XL index fell below the upward trend line in the 20-day moving average, it led to some consolidation and then to lower lows, but it remained relatively close to the normal correction level. So, we will now see, firstly, how successful the next bounce attempt is in bringing the XL index back above this line, and perhaps even breaking above the 20-day moving average again, and, most importantly, how much correction is needed this time before demand returns. Because it's easy to see this decline further, especially if demand for large-cap growth stocks continues. We rarely see large-cap growth and technology stocks rise alongside energy. It will be important to monitor this situation as we begin the fourth quarter. Therefore, from a monthly perspective, all this activity over the past few months is just a wide potential trading range. Again, this is a back-and-forth movement that has continued for several months, as we moved from a much longer trading range that extended from 2022 to the beginning of 2026. Along this path, we are still in an uptrend, aren't we? Since the lowest levels of the COVID-19 pandemic. So, this may ultimately just be a large continuation pattern on our way to further gains. We will be watching this closely, because a return to the low fifties could turn this into a reversal pattern.
Quote at 20:37 ›
2026-08-24BullishThis one
Then, let's go to energy. I think that's also a very interesting sector and um I'm going to make a I'm going to try to make an interesting move here cuz this obviously still inside the lagging quadrant. But, it's really improving rapidly. I think this is probably the longest tail because it's also a lot longer than materials. Longest tail, so picking up momentum rapidly. But also, when you look at the price chart, which we will do in a minute, actually is actually doing really well. So, I'm going to make this an outperformer. I'm going to label this a green sector because I do feel that it is actually rapidly improving and also the combination with the price chart and the daily RRG, I think has all the ingredients to move faster and outperform the S&P 500. It made might also be a reason to jump ahead a little bit. But, taking my chances here cuz I really think that energy sector is is in a good spot. It's in a good space.
See full history ›
Which window this belongs to for $XLESee the full record for XLE
KOL Says
KOL Says