16 Years in the Making

Energy stocks have been showing some strength over the past few weeks.

Looking at the large-cap Energy Sector ETF $XLE, the price has been coiling around a key shelf of former highs for the past two years.

And when you zoom out on the chart like I’ve done, you’ll notice this base has been forming for the past 16 years!

Buyers have tested this level multiple times, steadily absorbing the overhead supply at the current level.

This kind of action usually comes before a breakout, as bulls build up fuel for the next leg higher.

If XLE breaks out of this massive base, we’re all going to want a lot more energy exposure than we currently have.

As such, I’m getting ready for it and making a wish list of sector leaders.

I think it will happen soon. 100 marks the line in the sand.

Steve and I were discussing this theme, and we agreed that if there's one energy stock that couldn't look better right now, it’s Exxon Mobil $XOM.

We added some calls to our Breakout Multiplier portfolio this morning.

The setup looks fantastic, so we like this as a vehicle to front-run the breakout in energy. 

We plan to add more in the future.

Join our Breakout Multiplier team risk-free to get all the trade details and learn how we consistently trade options for outsized profits.

Alfonso