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XLE bounces 3.5% as the energy sector's sell signal loses steam

Technical analysis on XLE, the US energy sector ETF: this swing setup's sell signal reaches week 4 without confirmation, a 3.5% bounce drops signal strength to 2/100. Our model flags trading as not recommended for a new short.

XLE bounces 3.5% as the energy sector's sell signal loses steam
XLE: the sell signal loses steam
XLE bounces 3.5% as the energy sector's sell signal loses steam
July 10, 2026
XLE: the sell signal loses steam
Our view last week
XLE, the US energy sector ETF, is in week 3 of a sell signal: the week just closed down 1.2%, and the decline keeps making lower lows. The energy sector remains in a weak phase, the setup quality indicator climbs to 82 out of 100, and our model flags trading as not recommended for a new short here.
This week's summary
Weekly technical analysis. The sell signal on XLE, the US energy sector basket, has reached its fourth week without ever getting confirmed by the market: after last week's slide the sector bounced 3.5%, and signal strength collapses to 2 out of 100 — a decline with no fresh push left. The price is now boxed between a support and a resistance sitting right on top of each other, and our model flags trading as not recommended for a new short here.
Sell signal in observation ·4th week from start ·US stocks ·T2 ★ See Gold version →
IQS Phase
60
ordinary
Signal Strength
2
decline losing steam
Sizing
MINIMUM
Ranking
#132 / 137
US stocks sell signals
Trade P&L %
-2.44%
from signal to today
Chart · Weekly — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
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