The price of the nearby crude oil future has fallen to a new low for the move down and President Biden has not yet sat down with Saudi Crown Prince Mohammed bin Salman. What's going on? And what does that mean for the popular energy ETF the (XLE) -- the Energy Select Sector SPDR ETF?
Let's examine the charts and indicators.
In the daily bar chart of the crude oil future, below, we can see that prices are testing the rising 200-day moving average line. Equity traders are wringing their hands but futures traders have always focused on much shorter averages because of the leverage in the futures market.
The trading volume shows an increase from early June suggesting that traders and hedgers may be more active. The daily On-Balance-Volume (OBV) line shows a minor decline from early June.
The trend-following Moving Average Convergence (MACD) is bearish.