Chart of the Day - Monday, July 1, 2024

🏆 Today’s Chart of the Day was shared by Larry Thompson (@HostileCharts).

• The Energy Sector ($XLE) is testing a potential inflection point around $93.

• Apart from the Failed Breakout in April, $93 has been a major resistance level for $XLE over the past two years. This level also coincides with the upper bounds of a two-month Descending Channel.

• This has been an orderly correction over the past two months. Momentum remains bullish, with RSI refusing to hit oversold conditions (below 30).

The takeaway: The Energy Sector ($XLE) is trying to reclaim a pivotal level, around $93. If $XLE breaks above $93 the next upside objective will be the April highs, around $98.