Score 7.9 (out of 10): ENERGY SELECT SECTOR sets up for +12.1% rally in 1 month

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What’s Going On Here?

The OPEC+ group of oil-producing countries has agreed on a drastic cut to the global supply which puts US-listed energy companies favourably positioned to take advantage of higher prices.

Why Now?

ENERGY SELECT SECTOR SPDR has reached a new shorter-term high. Previously, during similar occasions, ENERGY SELECT SECTOR SPDR shares had a median return of +12.1%, over the following 1 month – based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for ENERGY SELECT SECTOR SPDR received a high score of 7.9 (out of 10). This insight was generated on 2022-October-6 with last price of 82.44.

What’s This Asset 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 92.41 (+12.1%) 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 78.74 (last price at 82.44), which is equivalent to a -4.5% 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:

10.8% (July-2022), -0.9% (March-2022), 19.7% (December-2021), 15.5% (September-2021), 3% (April- 2021), 19.8% (January-2021), 22.1% (October-2020), -11.8% (July-2020), 13.3% (March-2020), 2.4% (November-2019).

Historical Chart:

Summary:

NameENERGY SELECT SECTOR
ViewUp
Star (1 to 10)7.9
Target+12.1%
Time1 month
Hit Rate80%

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