Energy Sector Update - August 21st, 2017

Oil Is trading in the middle of the range that it has been in since May.  The top of the range has been around $50 and the lower side has been around $45.50.  Longer-term there is support around $43.  There was support there last September, November, and again in June.  The levels around $50-51 have been important resistance for almost two years and they probably continue to be, at least in the short-term.

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Natural Gas continues to consolidate around the $2.90 level.  It has been the middle of the range since early June.  Longer-term, if it trades down to the $2.50 level there will probably be support there again.  It was support during last August, November, an December.  It was also support in early 2015, and important resistance in January of 2016.

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Energy - The XLEs have broken important support around the $64.50 level. There was support at this level because the last four times they traded down to around $64.50, during last May, June, and August of 2016, and then again in early June, a rally followed.  It should now become a resistance level.  More precisely, $64 was the low in June and July.  They are oversold now.

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