Chart of the Day - Tuesday, August 23rd, 2022

Today’s Chart of the Day was shared by Mike Singleton (@InvictusMacro). It's a chart of the Energy sector ETF, $XLE, over the past 12 years. The Energy sector just reclaimed a crucial level around $79-80. This level has acted as resistance for the majority of the past decade. It's bullish to see $XLE back above this line in the sand, especially after the 30% correction it had earlier this summer. However, Mike points out there is a lot of price memory around this level, which could require some time to work through. In addition, RSI is diverging negatively, suggesting the trend is losing momentum. Is the multi-year breakout back on the table? Or, will this level continue to be a problem for $XLE?