On the XLE 15-minute chart, the broader market structure is firmly bullish. Price has been making consistent higher highs and higher lows, and most recently broke structure above 88.00, confirming continuation to the upside. There has not been a clear Change of Character yet, meaning buyers remain in control, though the current pullback is testing short-term demand. This structural setup suggests that the move higher is not yet complete, but a deeper retracement could unfold before continuation.
Looking at supply and demand, the most recent supply sits around 88.70–89.00, where price previously dropped sharply, confirming this zone as strong resistance. On the demand side, the nearest support is at 87.40–87.60, a level where buyers previously stepped in aggressively and created the breakout above 88.00. Below that, a secondary demand sits near 86.20–86.40, which also triggered a strong rally, showing that buyers continue to defend higher lows.
Inside the marked region, price is pulling back from local highs just under supply and is now heading toward the 87.40–87.60 demand zone. Momentum has shifted slightly toward sellers in the short-term, but candles remain controlled, suggesting this is a healthy retracement rather than aggressive liquidation. If buyers defend the 87.40 zone, the likely outcome is a bounce that targets 88.70 and potentially breaks into 89.00. If the demand fails, however, price could extend down toward 86.40 before attempting another leg higher.
Trade bias: Bullish
Expected direction: Pullback into demand at 87.40–87.60, then bounce higher toward 89.00
Invalidation level: A clean breakdown below 87.20 would weaken the bullish outlook and favor a deeper retracement into 86.40
Momentum condition: Short-term favors sellers during this retracement, but higher timeframe momentum still aligns with buyers
Price behavior: Current rejection wicks at highs show profit-taking, but no aggressive seller control yet
Looking at supply and demand, the most recent supply sits around 88.70–89.00, where price previously dropped sharply, confirming this zone as strong resistance. On the demand side, the nearest support is at 87.40–87.60, a level where buyers previously stepped in aggressively and created the breakout above 88.00. Below that, a secondary demand sits near 86.20–86.40, which also triggered a strong rally, showing that buyers continue to defend higher lows.
Inside the marked region, price is pulling back from local highs just under supply and is now heading toward the 87.40–87.60 demand zone. Momentum has shifted slightly toward sellers in the short-term, but candles remain controlled, suggesting this is a healthy retracement rather than aggressive liquidation. If buyers defend the 87.40 zone, the likely outcome is a bounce that targets 88.70 and potentially breaks into 89.00. If the demand fails, however, price could extend down toward 86.40 before attempting another leg higher.
Trade bias: Bullish
Expected direction: Pullback into demand at 87.40–87.60, then bounce higher toward 89.00
Invalidation level: A clean breakdown below 87.20 would weaken the bullish outlook and favor a deeper retracement into 86.40
Momentum condition: Short-term favors sellers during this retracement, but higher timeframe momentum still aligns with buyers
Price behavior: Current rejection wicks at highs show profit-taking, but no aggressive seller control yet
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Looking for powerful AI trading signals? Visit ProSignal.ai and take your trading to the next level! or join our telegram channel at t.me/prosignalai
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.