Energy ETFs Shoot Higher as Oil Revisits $100 | ETF Trends

Energy ETFs Shoot Higher as Oil Revisits $100 | ETF Trends

Energy ETFs Shoot Higher as Oil Revisits $100

July 22nd at 2:17pm by John Spence

Energy exchange traded funds have rallied over the past month as oil prices grind their way back to $100 a barrel and the sector ETFs extend their market lead.

Energy Select Sector SPDR Fund (NYSEArca: XLE) is up 8.2% over the past month, compared with a 3.9% gain for the S&P 500. Year to date, the energy ETF has climbed 17% while the broader market has advanced 8%, according to Morningstar.

Energy ETF holding Chevron (NYSE: CVX) is up more than 20% so far in 2011. The rally in the top Dow component is one reason why the index is outperforming the S&P 500 this year.[Why Dow Industrial ETFs are Beating the S&P 500 This Year]

The energy ETF “is outperforming today with the point and figure (P&F) price chart nearing a spread triple-top breakout, a move which would notch a new 2011 high. Beyond that we would look for a test of the 2008 high, also the all-time high, at $91.42 a share,” according to the Coe Report, a newsletter from Investors Intelligence.

“Just as compelling is the P&F relative chart for XLE versus the S&P 500. That ratio exhibits a ‘W’ bottom, effectively a base which implies a relative move to the 2008 high, equating to further outperformance in the months ahead,” the newsletter said Friday.

Energy ETFs have been a sector leader over the past two weeks, according toStockCharts.

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