One of the more noteworthy developments in recent days has been the move in energy prices. Crude oil closed at the highest level since February 28, up $1.26, or 2.4 percent, at $53.90, after Saudi Arabia and Russia declared their support for extending a global deal to cut oil supplies for another nine months. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) soared 2.93 percent to 33.37. Now the question is whether the rally has more legs? Below is an update look at a trade in XOP.
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 Exploration & Production ETF (daily)
Our “U.S. Market Trading Map” painted XOP bar in green (buy). Over the past few weeks, XOP has been trending lower in a short-term corrective mode as it worked off overbought conditions. The late September correction tested support at the 50-day moving average. That level was significant when the ETF climbed above it in early September. Friday’s massive bullish engulfing indicated…Click here to read more.
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