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Energy | Market Pulse | Stocks | Technical Analysis
Energy Stocks Could Be Hugely Oversold, According to This Chart
David Russell
July 29, 2021

Energy is the top performing sector this year, despite two months of weakness. It now appears hugely oversold in comparison with crude oil prices.

The first chart shows the ratio of the SPDR Energy ETF (XLE) against crude oil prices. Notice how the current ratio is among the lowest of all time.

The next chart shows …

For more, please click here to view the related idea and chart analysis on TradingView.

SPDR Energy ETF (XLE), daily chart with selected patterns, courtesy of TradingView.
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About the author

David Russell
David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

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