📊 Oil Near $70: ERX, DIG, XLE & DBC — Momentum in Focus

Hi, Tigers 🐯

Geopolitical risks remain elevated. Rising friction between the U.S. and Iran, along with potential retaliation risks, has reignited concerns over Middle East supply disruptions, especially near the Strait of Hormuz.

Oil prices have climbed sharply 📈, with WTI trading above $62/barrel near six-month highs and Brent testing the upper channel around $70/barrel,—lifting energy ETFs higher.

In such volatile conditions, leveraged products can be especially effective for capturing short-term momentum ⚡.

So Tigers 💹, what’s your move in this energy sector? Any trades or insights to share? 💬

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Below are four energy-focused ETFs to watch.

1. 🚀 $Direxion Daily Energy Bull 2x Shares(ERX)$ Skyrocketed +6.73%

  • 🧩Overview: $Direxion Daily Energy Bull 2x Shares(ERX)$ is a 2x leveraged energy ETF. It tracks 200% of the daily move in the Energy Select Sector Index, which includes U.S. energy majors like Exxon Mobil, Chevron, and ConocoPhillips.

  • 💰Fund Stats: Expense ratio 0.89%, AUM $235.3 M, average daily volume 473 K shares

  • 📈Technical View & Outlook: Momentum strong, volume 948.2K (1.98x avg), RSI 76.48, MACD bullish. Key levels: resistance $74.11–$78, support $71.50/$69.36; expect high volatility.

  • 👥Suitable For: Short-term traders due to daily reset; not ideal for long-term holding.

2. 🔥 $PROSHARES ULTRA ENERGY(DIG)$ Jumps +6.29%

  • 🧩Overview: $PROSHARES ULTRA ENERGY(DIG)$ seeks 2× the daily performance of the S&P Energy Select Sector Index, providing leveraged exposure to large U.S. oil & gas companies.

  • 💰Fund Stats: Expense ratio 0.95%, AUM ~$80 M, average daily volume 60–70 K shares.

  • 📈Technical & Outlook: Volume ~111.1K, MACD bullish, RSI‑6 76.65 indicates strong momentum but nearing overbought. Expect consolidation near $47.82; a break could target $49–$50, with support at $47/$45.

3. ⚡ $Energy Select Sector SPDR Fund(XLE)$ Hits 52-Week High

  • 🧩Overview:$Energy Select Sector SPDR Fund(XLE)$ tracks the S&P Energy Select Sector Index.

  • 💰Fund Stats: Expense ratio 0.08%, AUM $31 B, average daily volume 74 M shares; dividend yield 2.9%.

  • 📈Technical & Outlook: Volume ~83.8 M (VR 1.42) confirms buying interest. RSI‑6 76.7 signals overbought, MACD bullish. Expect consolidation near $51.78; breakout targets $53–$54, support at $51/$49.50.

  • 👥Holdings Exposure: Largest weights in Exxon Mobil (~24.5%) and Chevron (~17.9%), with other energy names like ConocoPhillips, SLB, and Williams also significant.

4. 📊 $Invesco DB Commodity Index Tracking Fund(DBC)$ Climbs +2.59%

  • 🧩Overview: $Invesco DB Commodity Index Tracking Fund(DBC)$ tracks a diversified commodity basket, heavily influenced by energy and metals.

  • 💰Fund Stats: Expense ratio 0.85%, AUM $1.24–1.28 B, average daily volume 1.165 M shares.

  • 📈Technical View & Outlook: Volume 1.165 M (VR 0.75), RSI‑6 50.71 signals momentum recovery, MACD positive but declining. Expect consolidation at $23.87–$24.15; breakout targets $25–$25.69, support at $23.87/$22.39.

⚠️ Disclaimer: All information is based on official company disclosures and market data for reference only. Not investment advice.


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# Iran-Israel Tensions: Will Oil Rebound or Hit New Low?

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  • omarbarnawii1
    ·02-04 22:12

    Great article, would you like to share it?

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