I do think Energy will rotate out, it is not well supported by FX/$USD here. I have a position started in XOM, I'd like to give it another day before adding, but quick coverage can be grabbed with a leveraged Ultrashort like ERY.
Energy was trending down, we saw what I think was a head fake move out of the triangle and then out of the downtrend.
Today's 3C chart in Energy showing distribution on strength, there needs to be strength to distribute in to the same way we want to short strength.
2 min chart shows the same today, in yellow a big distribution point on a head fake move.
The 3 min chart confirming distribution today
The 5 min chart's trend is horrible, this is a deep leading negative divergence.
The 15 min chart is bad enough that I would consider Energy/XLE a short here, I would leave some room on the stop though.
The 60 min has a great negative divergence, the pop above the downtrend sen to the far right in negatively divergent.
We can look at XOM closer tomorrow as the market would need dollar weakness which would help energy in the very short term, this could be the chance to initiate or add, but as I mentioned above, for the longer term, I have no problem being short energy right here.
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