Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Is The XLE Primed For A Potential Breakout?

XLE stock price

The Energy Select Sector SPDR Fund (NYSE: XLE) is setting up on a higher time frame for a potential breakout. YTD, the sector ETF is down almost 7%. However, as the uptrend remains intact and the energy ETF consolidation further contracts, a promising risk: reward setup is beginning to emerge.

The XLE is an ETF that seeks to provide investment results that generally correspond to the price and yield performance of the Energy Select Sector Index. The index includes companies from the following industries: oil, gas and consumable fuels, and energy equipment services.

Bigger Picture View of XLE

XLE stock chart
Since bottoming out in March 2020, the ETF has been in a steady uptrend, consistently making higher highs and higher lows. However, after reaching a high of $94.71 in November last year, the ETF has traded slightly lower. Notably, the bigger picture uptrend has remained intact, and the ETF is trading near the wedge's resistance and its 200-day SMA.

Since topping out in November of last year, the ETF might have pulled in, but it still put in higher lows versus the previous higher low set in September last year. The uptrend's support is currently $75, and a move below would signal a shift in momentum which might see the price test the higher low from September last year, around $68.

However, expansion becomes more likely as the range contracts near the wedge pattern's resistance. If the ETF breaks above the 200-day SMA and resistance, around $85, there would be breakout confirmation, and the ETF could quickly test resistance near $90. The current pattern offers a favorable risk: reward for a directional move once a breakout is confirmed.

Of course, when considering a position in a sector-specific ETF, it is vital to analyze more than just the chart. Monitoring the top-weighted holdings is crucial since they significantly impact the performance of the ETF.


Top Three Holdings

XLE stock holdings
Exxon Mobile (NYSE: XOM) is the ETF's top holding with a weighting of 22.45%. XOM has a Moderate Buy rating based on 21 analyst ratings. Analysts are predicting a 16.05% upside in the stock, with a consensus price target of $124.70. Over a year, the stock is up 22.5% and currently trading in a similar pattern to the ETF, with support near $100 and resistance at $110. XOM has a P/E of 7.28 and a dividend yield of 3.39%.

Chevron (NYSE: CVX) is the second largest holding of the ETF, with a weighting of 19.36%. Analysts are predicting a significant upside in CVX, with a consensus price target of $191.68, predicting a 22% upside. The stock has a Moderate Buy rating based on 21 analyst ratings. CVX has a P/E of 8.48 and a dividend yield of 3.84%. Although shares are down 12.48% YTD, the stock, like the XLE and XOM, is consolidating above critical support and maintains a bigger picture uptrend.

Schlumberger (NYSE: SLB) is the third largest holding of the ETF, with a weighting of 4.87%. Like CVX, SLB has a Moderate Buy rating and a consensus price target of $64.44, predicting a 30.26% upside based on the 18 analysts' ratings. The stock has a P/E of 18.39, considerably higher than CVX and XOM, and a dividend yield of 2.02%. Like the names already mentioned, SLB has maintained an uptrend since bottoming out in March 2020 and currently trading in consolidation above the uptrends support. A positive catalyst for the sector or one of the names mentioned above, including SLB, might be enough to cause upward momentum and technical breakouts across the industry.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.