Golden Crosses Abound In Energy

Since mid-November, the Energy sector (XLE) has consistently traded above its moving averages. While it has pulled back a bit recently, XLE’s moving averages have continued to move higher. In fact, today XLE is setting up to experience a golden cross. A golden cross is when an upwards trending 50-DMA moves above an upwards trending 200-DMA.

Not only is the sector ETF potentially about to experience a golden cross, but it will be the first time in a long time that the 50-DMA has even traded above the 200-DMA. As shown below, the last time that XLE’s 50-DMA was above its 200-DMA on a closing basis was way back in November of 2018, 537 trading days ago. Since XLE began trading in the late 1990s, that is the longest stretch on record in which the shorter-term moving average has been below the longer-term 200-DMA. The next longest streak ended at 389 days in May of 2016.

As for the individual stocks of the sector, there are many charts that are showing a similar trend.  Each day in our Chart Scanner and Trend Analyzer tools, we highlight recent golden crosses.  As recently as last Thursday, Chevron (CVX), EOG Resources (EOG), National Oilwell Varco (NOV), and Transocean (RIG)—not an S&P 500 member and as such not included below—all made their way onto the screen. Looking across other S&P 500 Energy names, there have been several other recent golden crosses like Apache (APA), Diamondback Energy (FANG), and ConocoPhillips (COP).

As those stocks have completed the pattern, there are still others that are getting close to experiencing a golden cross. Perhaps the closest is Occidental Petroleum (OXY) whose 50-DMA was just 5 cents below its 200-DMA as of yesterday’s close. As for other stocks in the sector, names like Kinder Morgan (KMI) and Exxon Mobil (XOM) have further to go but generally have their moving averages trending in the right directions. 

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