When Energy?

In bull markets, everyone eventually gets a turn.

And if there’s one sector that hasn’t had its moment yet, it’s Energy.

Beneath the surface, we’re starting to see some strength emerging, especially in the refiners and oil services names. That’s usually how these moves begin — from the inside out.

But when it comes to the big picture, it all comes down to one chart: the Energy Sector ETF $XLE.

Price continues to battle those 2008 highs — a massive level that’s capped every rally for years.

Buyers have been knocking on that door again and again, slowly eating through the overhead supply.

The setup is right there in front of us.

For me, 100 is the line in the sand for $XLE — once it clears that level, it’s time to start leaning into energy more aggressively.

Let me know what you think!

Stay sharp,

Alfonso De Pablos, CMT

Director of Research, All Star Charts