🏆 Today's Chart of the Day was shared by Scott Redler (@RedDogT3)
- Energy ($XLE) has been the strongest sector over the trailing week, closing at its highest level since April as it attempts to fill the Liberation Day gap for a third time.
- After surging off the Covid lows in 2020, Energy was the only sector that resisted the 2022 bear market, but it has chopped sideways during this three-year bull market.
- Scott notes that Energy could be a major theme in the year ahead, with $XLE tightly coiled below the former peaks from 2014/2024, near $100–$98. Clearing $100 would mark the completion of a decade-long base.
The Takeaway: Energy is setting the stage for a potential multi-year breakout, with $XLE tightly coiled below a decade-long resistance level.
