Sometimes, the market can predict the future. And if that’s the case with the Energy Select Sector SPDR Fund ETF (NYSE:XLE), oil could could be poised to move much higher.
There is a saying that the "market has a memory." It’s true. It means that certain support or resistance levels can stay intact and retain their importance for a long-time.
If these important levels are broken, big moves tend to follow.
As you can see on the following chart, XLE has broken the resistance that was at $78 for six years. This ETF tracks companies that are in the energy industry.
This breaking of major resistance means the stocks of energy companies will probably continue to rise. This could be the market’s way of saying that oil will continue to move higher as well.
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