Energy sector with trapped sellers - private investors on the wrong side

The Value Area Low, in the range of approximately $77 to $78, has been tested several times recently. While the recent lows of around $82.50 have been slightly undercut, which could have a negative short-term effect, this represents a potential strength: numerous stop orders were likely triggered in this area, likely providing institutional market participants with favorable liquidity conditions for purchases.
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H1 CHART – XLE: ABSORPTIONIn both scenarios, the following applies: Entry is not made impulsively, but only when a reaction is confirmed. I specifically look for a clear reversal signal – for example, on the hourly or 15-minute chart – that proves that the market is respecting the aforementioned zones.
IMPORTANT SUPPORTS: UNLOCK NOW
IMPORTANT RESISTANCES: UNLOCK NOW
Good luck ,
Yours, Dennis Gürtler.
Dennis Gürtler is the founder and managing director of a proprietary trading firm in Berlin. As a former portfolio manager and full-time trader, he has been active in the financial markets since 2008. With over 15 years of experience, Dennis Gürtler is known for his expertise in the DACH region.
EXCLUSIVE PEPPERSTONE ADVANTAGE INTENSIVE COURSE 2025 HOW ARE SUPPORTS / RESISTANCES TRADED?One of the most important skills of successful traders is the ability to properly handle support and resistance levels. In this article, I'll discuss how beginners, intermediate, and even experienced traders can efficiently utilize support and resistance levels .
TRADE MANAGEMENTAs always, it's crucial to immediately adjust the stop-loss to the entry level to limit the risk. As always, the market determines how far the potential trade will then run. Taking profits at +0.5R, +1R, and +2R is generally sensible. "R" refers to risk units.
RISK WARNINGThe situation depicted belongs to a specific trend type: uptrend, downtrend, or sideways. As a trader, I primarily focus on trading the direction of the prevailing trend. Additionally, the support and resistance levels depicted are to be understood as zones of interest. A trade is only initiated when there are minor, narrow entry signals. If these do not occur, I do not place a trade, as risk reduction and confirmation of the trend via price action are my top priority. Please trade responsibly. Ongoing corrections without confirmation can easily go against the trend or the trader and even reverse the entire trend.
RISK WARNING:
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