Energy Sector: Great Setups to Watch in June

SPDR Select Sector Fund - Energy (XLE)

The XLE is showing signs of a potential breakout from a falling wedge pattern, a bullish signal that often precedes significant upward movement. The chart indicates that XLE has been consolidating between the 100% Fibonacci retracement level at $93.69 and the 61.8% level at $88.07.

Trade Idea: Look for a breakout above the upper trendline of the wedge, ideally above the 100% Fibonacci retracement level. A close above this level could signal a strong upward momentum, with targets around the 161.8% Fibonacci level at $102.77 and beyond. Consider setting a stop-loss just below the 61.8% retracement level to manage risk.

Exxon Mobil Corporation (XOM)

Exxon Mobil is forming a cup and handle pattern, suggesting a bullish reversal is on the horizon. The stock has been testing the neckline resistance around the $120.70 level, a breakout above which could signal the start of a new uptrend.

Trade Idea: Watch for a decisive breakout above $120.70, which would confirm the icup and handle pattern This could set the stage for a move towards the 161.8% Fibonacci extension level at $136.11. As always, ensure to place a stop-loss to protect against false breakouts, ideally just below the $110 level.

Exxon Mobil Corporation (XOM) - Elliott Wave Perspective

Taking a look at XOM from an Elliott Wave perspective, the stock appears to be in the midst of a corrective wave (C) of a larger impulsive wave pattern. This setup suggests a potential for a significant move once the corrective phase concludes.

Trade Idea: The key here is to wait for the completion of wave 4 and the start of wave 5. A move above $115.15 could indicate the beginning of wave 5, targeting the 161.8% extension at $136.13. Managing risk with a stop-loss below wave 4 around $111.07 is crucial to protect against downside risk.

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