Energy sector popped Wednesday after weekly data from the Energy Information Administration showed a smaller-than-expected crude inventory build. As such, the Spdr S&P Oil & Gas Exploration & Production ETF (XOP) jumped 2.67% to 37.26. The near-term technical outlook remains very constructive, according to our “U.S. Market Trading Map”. 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. The 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). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.2 – Spdr S&P Oil & Gas Exploration & Production ETF (daily)
As indicated in the above chart, our “U.S. Market Trading Map” was looking at XOP from a Buy side back in March 27, 2017. XOP printed a bullish divergence on Monday when it broke down to multi-month low and the MACD indicator is making a notably higher low…Click here to read more.
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