EXXI (Energy XXI Ltd) has hit the the first profit target, T1 at 3.62, for a very quick, one-day gain of 12.8%. Consider booking partial or full profits and/or raising your stops, depending on your trading plan. EXXI will remain an Active Long Trade at this time with the next resistance level/potential target being the yellow downtrend line and the former potential second target, T2 at 5.50, still a potential swing target. My expectation and preference would be to see EXXI consolidate below the 3.70 level, which defines the top of the recent double-bottom pattern before going on to make a sustained break above the pattern.
EXXI 4-hour Feb 3rd
Also keep in mind that USO is quickly approaching my first upside target defined by the bottom of the Jan 5th gap (19.36), which raises the chances of at least a minor pullback or consolidation in crude prices on the initial tag of that level. Should USO continue rising much above the bottom of that gap, the next likely resistance level would be the top of the gap which comes in around 19.69. Of course, I’ll have to scrub or cross-reference the USO resistance level with those of crude futures, which I plan to post in an update soon.