Benzinga | Jun 4, 2021 09:40AM EDT

This Energy ETF May Be Breaking Out

As oil prices rise, so doshares of companies that hold a significant part of their assets in oil. The Energy Select Sector SPDR Fund (NYSE:XLE) holds the stocks of many of these companies.

Since March there has been a large group of sellers at the $54.50 level. They have kept a top on the price, but that may be changing.

Over the past two days, XLE has traded above this important level. This could be a sign that the sellers who created the resistance are gone.

With this large amount of supply off of the market, buyers will need to pay higher prices. This could force the shares into rally mode.