Energy, Industrials, and Materials

Oil – Oil has been consolidating and as expected there is support around $51.  This level is support because it was clearly defined resistance three times over the past 16 months before breaking through it in December.  It failed and had a significant selloff from this level in October of 2015, in early June, and again in October.  

 

Copper – Copper continues to uptrend and test resistance around the $270 level.  This is where it ran into resistance in November and early December.  It is coming off of multi-year lows so it may be setting up for another rally if this level breaks.  There does not seem to been clearly defined resistance between current levels and $300.

 

XLE – S&P 500 Energy Sector ETF – The XLEs consolidated for about a month just above $74 before finally breaking the lower side of the range yesterday.  There will probably be support around $71 because it was resistance in August, September, and October.

 

XLI – S&P 500 Industrials Sector ETF – The XLIs have sold off after becoming overbought at all-time highs.  Longer-term, if they sell off there may be support around the $59-60 level because this was the top of the range from July through early September.  Short-term, the $62 level has been support and the lower end of the recent range.

 

XLB – S&P 500 Materials Sector ETF – The XLBs have seen some profit taking after gapping up to all-time highs and becoming overbought after breaking resistance around the $52 level.  There was resistance at this level because it was the all-time high in early 2015.  Longer-term, $49 was the top of the range from the middle of July throughout the early part of September so there may be some support at that level.

 

XOP – S&P 500 Oil & Gas Exploration & Production ETF – The XOPs are testing important support around the $40 level.  The $40 level is support because it was resistance in August, October, and November of 2015 and again in October of 2016.  If it breaks there may be a significant move lower.