The Energy Sector 07-31-10

Since I wrote about this in my comentary I thought that it might pay to do a little work in that area.  Let us start with the XLE.  The energy ETF. 

The XLE closed at 53.84 on Friday.  There is currently downside pressure being applied to price.   Price is oscillating on either side of the short cycle price objective at 53.78.  Price has to go through the entry price for the down cycle to start at 52.67 and the first price objective for that move should be 50.63.   The longer cycle up has a price objective at 57.60 and for that move to restart price would have to go through 54.97 with the first price objective at 56.49.  So right now it looks like there is a little more work to be done before things are clearer for this sector.  Then it becomes a question of Coal, Oil or Natural Gas.  Or could it be all three and what about the transportation necessary to move those products?