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One of the noteworthy developments in recent days has been the move in oil related stocks.  After plunging more than 23 percent in 2017, the SPDR S&P Oil & Gas Equipment & Services ETF (XES) is falling 11 percent so far this year as soaring U.S. output threatens to undermine OPEC efforts after American drillers added more rigs for a fourth straight week.  Now the question is whether this is a beginning of the end or there’s more downside ahead?  Below is an update look at a trade in XES.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges.  As shown, the underlying is in a short-term bullish trend when the price bars are painted in green.  The underlying is in a short-term bearish trend when the price bars are painted in red. 

Chart 1.1 – SPDR S&P Oil & Gas Equipment & Services ETF (daily)

Our “U.S. Market Trading Map” painted XES bar in red (sell) – see area ‘A’ in the chart.  Over the past few days, XES has been trending higher in a short-term corrective mode after the January selloff found support near the late October 2017 lows.  Last week’s oversold rebound is testing resistance at the 200-day moving average.  That level was significant when XES fell below it in early February.  It is now acting as strong resistance.  There’s a distinct possibility that a bear flag formation is currently setting up in the daily chart of XES…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.

 

This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

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