Chart of the Day - Thursday, November 16, 2023

Today’s Chart of the Day was shared by Jamie Saettele (@JamieSaettele). This month, Energy ($XLE) is the only sector in negative territory. It tried to break out of a 15-month Ascending Triangle pattern in September, but it remains within the boundaries of the pattern. This Ascending Triangle pattern features a rising trendline as support and horizontal resistance at $94. Jaimie points out that this bullish pattern is on the verge of failing as $XLE tests support. When chart patterns fail, many conclude that technical analysis doesn't work, but there's valuable information to be gleaned from pattern failure. It's especially bearish when bullish patterns fail and especially bullish when bearish patterns fail.