Score 7.8 (out of 10): ENERGY SELECT SECTOR SPDR sets up for +7.6% rally in 1 month

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What’s Going On Here?

Oil prices have fallen from a peak earlier this year. But energy companies’ earnings estimates have kept rising on stronger demand and low capital spending.

Why Now?

ENERGY SELECT SECTOR SPDR has triggered a new technical analysis ‘buy the dip’ signal. During similar occasions, ENERGY SELECT SECTOR SPDR shares had a median return of +7.6%, over the following 1 month – based on 10 historical occasions with 7 of those showing positive returns (70%). This buy signal for ENERGY SELECT SECTOR SPDR received a high score of 7.8 (out of 10). This insight was generated on 2022-April-25 with last price of 76.76.

What’s This Company About?

ENERGY SELECT SECTOR SPDR is in the Sector Fund-Energy business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: XLE US.

What’s My Risk / Reward and Time Horizon?

We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 82.6 (+7.6%) has been reached. Based on ENERGY SELECT SECTOR SPDR’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 73.16 (last price at 76.76), which is equivalent to a -4.7% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

10.6% (April-2022), 11.4% (February-2022), -6.2% (November-2021), 16.9% (September-2021), 5.6% (May-2021), -2.7% (March-2021), 9.6% (December-2020), 13.7% (May- 2020), 4.6% (November-2019), -1.5% (September-2019).

Historical Chart:

Summary:

NameENERGY SELECT SECTOR
ViewUp
Star (1 to 10)7.8
Target7.6%
Time1 month
Hit Rate70%

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