Cycle Trading

XLE has been in a daily uptrend that has been characterized by highs forming above the upper daily cycle band and lows printing above the lower daily cycle band.

XLE printed its lowest point on Monday, day 36. That places it deep in its timing band for a daily cycle low. XLE formed a swing low on Wednesday. A close above the 10 day MA will confirm the new daily cycle. Since XLE has been in a daily uptrend, Wednesday’s swing low indicates that XLE will remain in its daily uptrend and trigger a cycle band buy signal.