Energy Select Sector SPDR
Energy Select Sector SPDR
IBD Stock Analysis
- XLE stock is in buy range after breaking a short-term downtrend.
- Shares retook their 50-day line intraday for the first time in two months.
- The relative strength line is ticking upward, after slumping since mid-June.
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:14PM EDT on
Energy Select Sector SPDR (XLE) is the IBD Stock Of The Day, as oil stocks are outperforming the market amid growing expectations that oil prices will continue to rise. XLE stock is in buy range.
XLE tracks a market-cap-weighted index of U.S. energy companies in the S&P 500.
The exchange-traded fund includes Big Oil’s most recognized names, such as Exxon Mobil (XOM) and Chevron (CVX). Some of the ETF’s top market movers today also include Marathon Petroleum (MPC) and APA (APA). Occidental Petroleum (OXY) also makes the list.
U.S. crude oil prices rose 1% to settle at $70.45 a barrel on Monday as a new tropical storm threatened to disrupt Gulf of Mexico operations, just a few weeks after Hurricane Ida blew through the key oil region.
Meanwhile, OPEC also raised its demand forecast for 2022, when it sees output surpassing pre-pandemic levels.
“This comes despite demand challenges in the coming months as a result of the delta variant, which OPEC alluded to in its monthly report.” said Craig Erlam, senior market analyst at Oanda, in a note Monday. “Despite this, demand remains strong supported by output disruptions elsewhere.”
Elsewhere, Bank of America Global Research said a cold winter could spur more demand for oil, so it’s mulling bringing forward its $100 per barrel oil price target to the next six months from mid-2022.
Shares of the ETF rallied 1.4% to close at 49.16 on the stock market today. XLE stock borke a downtrend and retook it’s 50-day line intraday for the first time in two months, according to MarketSmith chart analysis. Friday’s high of 48.65 is the buy point. The buy zone extends to 51.08.
Among the oil stocks fueling XLE stock’s rise, APA surged 7.8% and Occidental Petroleum jumped 6.7%. Chevron rose 2%, while Exxon Mobil added 2.6%. And Marathon Petroleum gained 3%.
XLE stock broke out past a cup-base buy point of 54.47 intraday on May 10. It then raced to a 52-week high 56.65 intraday on June 10, before pulling back below its 50-day line on July 6.
XLE’s relative strength line is ticking upward, after slumping since mid-June.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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