They say markets have memories. Shares of the Energy Select Sector SPDR Fund ETF (NYSE:XLE) prove that's true and they may also be on the verge of a major breakout.
As you can see on the below chart, the $78 level has been resistance for XLE since December 2016. Since then, each time the ETF rallied and reached it, the move stalled and shares headed lower.
Now XLE has reached this important level once again. If it can push through, it could be a sign the sellers who created this resistance are gone. They have finished or canceled their orders.
With this supply out of the way, the stage is set for a new uptrend to form. But if XLE can’t break through, then there’s a good chance the next trend is lower.
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