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XOP GUSH Trade Update: Ascending Broadening Wedge Pattern

Regarding the recent comments on DRIP in the trading room whereby several traders just recently had their stops taken out, it looks quite likely that there might another shot at an XOP/GUSH short or DRIP long on a break below this Ascending Broadening Wedge pattern (purple uptrend line). The negative divergences in place warn of a likely breakdown & it appears that the recent ramp & crude & the energy stocks was intentionally orchestrated to just barely run the bulk of stop loss orders on short entries that were taken on the recent break of the rising wedge pattern (yellow uptrend line on this chart along with the purple upper TL which defined that wedge).

XOP daily June 10th

XOP daily June 10th

As XOP is right on the line, still within the pattern & crude oil has only barely given back the key 50 level, it might be prudent to wait and see some downside follow-through next week before re-shorting or adding to an existing XOP/GUSH short (which is still an Active Trade with a stop over 38.28).

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Jun 10, 2016 2:34pm|Categories: Completed Trades - Short|Tags: , |4 Comments

4 Comments

  1. GetItRiight June 13, 2016 12:07 pm at 12:07 pm

    Randy, can I ask you to provide an update on when the XOP price has broken down below the ABW? I can’t follow it from work.
    Thanks.

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    • rsotc June 13, 2016 12:25 pm at 12:25 pm

      GIR- XOP has broken down below the ABW pattern which is also the bottom of the bearish rising wedge pattern on the daily time frame. Here’s a zoomed-in view on the daily chart:

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  2. GetItRiight June 15, 2016 11:28 am at 11:28 am

    Is XOP currently backtesting the wedge it broke down from?

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    • rsotc June 15, 2016 11:32 am at 11:32 am

      yes.

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