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| XLE Daily |
Now the buy/sell/hold decision is getting harder. We had a significant down day on decent volume. Today's and yesterday's candles formed a Left/Right Combo candlestick pattern. Stochastics are still high and there's still a tiny little gap below us. It's not unusual at all for a breakout to do a small reversal and test the breakout level, or in this case, the Trend Line. These can indicate a bearish move of about 3 points or so, down to the Trend Line, which is coincident with the tiny gap.
On the other hand, we found support at the 50sma and 8ema, which happen to be coincident today. This could suggest a reversal tomorrow and continuation with the up trend.
It seems like a 50/50 bet from here. But since we're in an uptrend, and we found support, and not closed below the 8ema, I decided to hold the position.
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