- Price action breaks below important support level at $85.22
- Lower Bollinger Band® at around $82.14
Energy Select Sector SPDR Fund weakened earlier in the day, before moving away from its $84.08 low and recovering back to $84.26.
Energy Select Sector SPDR Fund hit a significant low of $67.49 around 7 months ago, but has since recovered 27.1%.
With regards to technical trend indicators, chart analysis show that Energy Select Sector SPDR Fund made an initial break below its 10 day Simple Moving Average at $85.33, a possible indication of a forthcoming negative trend. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at $82.14, a low enough level to, generally, suggest that Energy Select Sector SPDR Fund is trading below its fair value. Chart analysis suggests Energy Select Sector SPDR Fund fell below the $85.22 support zone and moved 96 cents beyond it; the next level of support with significant buyer interest is estimated at $84.67.
Overall, the technical outlook suggests Energy Select Sector SPDR Fund is likely to remain muted for the immediate future, with no clear-cut direction.
Fundamental indicators – United States Crude Oil Inventories published today at 15:30 UTC came out at -1.69 million, falling short of the 395,000 projections and continuing its decline from the previous 1.17 million figure.
In the meantime, negative performances are also seen in other markets, Merck is down $3.56 from the beginning of the session and now trades around $107.71. AbbVie drops 2.39% to trade around $149.27. Exxon Mobil falls 1.95% to trade around $109.43.
Upcoming fundamentals: United States Initial Jobless Claims expected to decline to 195,000 while its preceding data was 190,000, data will be available tomorrow at 13:30 UTC.