
Energy ETF (XLE) hits ATH as crude oil price forms golden cross
- The SPDR Energy ETF has been in a strong uptrend this year.
- The price of crude oil has continued soaring, with Brent reaching a high of $85.
- Oil has formed a golden cross pattern on the daily chart.
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The SPDR Energy Select Sector ETF (XLE) stock price surged to a record high as the price of crude oil formed a golden cross. The ETF soared to a high of $94, its highest point on record. It has risen by more than 18% in the past 12 months.
Crude oil price forms a golden cross
Copy link to sectionThe XLE ETF is one of the biggest energy ETFs in the US with over $39 billion in assets. It is a fairly concentrated ETF with just 23 oil and gas companies.
The biggest companies in the fund are the likes of ExxonMobil, Chevron, ConocoPhillips, Schlumberger, and Marathon Petroleum. Exxon and Chevron have a big stake in the ETF at 38%, which is a big risk.
The XLE ETF does well when the price of crude oil is rising, which has been happening in the past few weeks. Brent, the global benchmark, has jumped to $85 while the West Texas Intermediate (WTI) is up to $82. The two have risen by more than 15% this year.
The price of gasoline is also in a strong upward trend. According to AAA, the average price of gasoline in the US has jumped to $3.53, up from last year’s low of $3. This rally partially explains why inflation has been stickier this year.
There are signs that the price of crude oil has more room to rise this year now that it has formed a golden cross pattern, as shown below. A golden cross is a situation where the 50-day and 200-day moving averages make a crossover.
In most cases, a golden cross is one of the most accurate bullish signs in the market. The price of Brent jumped by 12% the last time this cross happened in August last year.

Crude oil has formed a golden cross pattern
XLE ETF outlook
Copy link to sectionThe performance of the XLE ETF will depend on whether the price of crude oil continues rising in the coming months. If this happens, it could help to push energy stocks higher as investors anticipate more income growth.
The most recent results revealed that energy companies were doing well even as oil prices retreated in the fourth quarter. Exxon Mobil produced 3.73 million barrels of oil per day in 2023. Its total revenue came in at $84.3 billion in the fourth quarter while net income was $7.63 billion.
Other energy companies like Chevron and Marathon also released strong results. Energy companies have some of the biggest dividends and free cash flows in Wall Street.
This strong trend may continue if Western companies continue boosting oil production. The US is expected to average 14 million barrels of oil in 2024, a record high.
Turning to the daily chart, we see that the SPDR Energy ETF formed a golden cross pattern in January. Since then, it has moved from about $80 to $94. It also crossed the crucial resistance point at $91.40, its highest point in 2023.
The ETF has remained constantly above the 50-day and 200-day moving averages. Therefore, the outlook for the fund is extremely bullish, with the next target to watch being at $100.

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