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| XLE Daily |
Today's chart looks worse than it probably is. It did form a red candle with no top wick. But we didn't close below the 8ema.
Yesterday I said "we're right up against the 50sma which could provide resistance, and put us in a bobble between the 8ema and the 50sma". So far, it looks like that's what's happening. If we close above the 8ema tomorrow, then it will look even more like a bobble between MA's.
Certainly there's not enough evidence to exit the trade. Not yet anyway. So we held the position.
If we close below the 8ema tomorrow, and near the bottom of the day's range, then we'll have to think seriously about getting out. But we may want to wait and see if there's follow through the next day. It'll depend on the actual situation near the Close. For example, if the options have very little value left in them, then it may make more sense to hold on to them for a possible bounce.
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