The Noose Narrows on the Oil & Gas Equip & Services SPDR

Arthur Hill
by Arthur Hill,
Chief Technical Strategist, TrendInvestorPro.com

Oil remains weak overall and so do the energy related ETFs (XLE, XOP, XES). The chart below shows the Oil & Gas Equip & Services SPDR (XES) hitting a new low in October and then consolidating with a triangle. The pink lines show the Bollinger Bands narrowing like a noose around price action. The narrowing tells us that volatility is contracting and we can expect a volatility expansion to follow. Given the downtrend and the triangle, the odds favor a continuation lower.


Click this image for a live chart.

Arthur Hill
About The Author:

Arthur is the Chief Technical Strategist at TrendInvestorPro. Focused primarily on US equities and ETFs, his systematic approach of identifying trend, finding signals within and setting key price levels has made him an industry-leading technician. Learn More 

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