I will be watching $XLE next week, and trade any opportunities with price extensions getting $1 under the 5 day EMA to the downside, and also converging near the 30 RSI on the chart. I will be a buyer of these extensions away from the 5 day EMA, and enter long using $ERX, looking for more reversals back to the 5 day EMA. $XLE has been in a downtrend, but did start to firm up last week, creating a short term trading range with resistance at $74 and support at $72.50. $XLE is approaching other key long term price levels on the chart, like the $73 support from March and the $72 support level from January. I will see if these levels hold for some bounce plays.
