The Nymex crude for April delivery traded as high as $100 in early Wednesday trading session amid ongoing concerns related to social and political turmoil in the Middle East and North Africa before backed down in the afternoon to settle at $98.10, up 2.8%. As a result, the SPDR S&P Oil & Gas Exploration & Production (XOP) advanced 2.7% to 60.31.
In fact, a closer look at the daily chart of XOP suggested that the ETF could follow the so-called trend channel higher, heading toward the 2-year high near 65. Just so that you know, initially profiled in our November 4, 2009 “Swing Trader Bulletin” XOP had gained about 52 percents and remained well position.
The graphics below are from our “U.S. Market ETF Trading Map”, which shows the near-term technical bias for XOP and the S&P 500 index. As shown, the underlying is in a short-term bullish trend when the price bars are in green. The underlying is in a short-term bearish trend when the price bars are in red. And yellow bars identify period of neutral or sideways trading pattern.
Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading).
Chart 1.1 – SPDR S&P Oil & Gas Exploration & Production (daily)
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