Stocks fell on Tuesday, with the major indices retreating from the record highs, as investors considered the timing of reduced monetary stimulus from the Federal Reserve and monitored budget negotiations on Capitol Hill.
Notably, Energy Transfer Equity L.P. (ETE) bucked the overall trend, jumped 2.57% on strong volume to 76.72, a whisker below the all-time high set in November 2013. This is bullish from a technical perspective. In fact, as the chart below indicated, ETE could climb above 83 to test the 127.2% Fibonacci extension after breaking out from the so-called bullish flag pattern. Just so that you know, initially profiled in our August 28, 2013 “Swing Trader Bulletin” ETE had gained more than 20% and remained well position.
The graphic below is from our “U.S. Market ETF Trading Map”, which show the near-term technical bias and trading ranges for ETE. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.1 – Energy Transfer Equity L.P. (daily)
As indicated in the above chart, our “U.S. Market ETF Trading Map” rates ETE as a Buy. Over the past few days, ETE had been trending lower in a short-term corrective mode as traders digested last Thursday’s massive gain. Tuesday bullish breakout had helped clear resistance at the 3-day falling trend line resistance, indicating that the 3-day bullish flag had resolved itself into a new upswing…Click here to read more.
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