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XOP GUSH Trade Update

Although XOP has essentially traded sideways since breaking down (as with the broad markets), I still favor a resumption of the downtrend to the T2 final target of 31.77. A break below this most recent minor uptrend line could be the catalyst for the next wave down. The second 60-minute chart below presents an alternative view of XOP showing a symmetrical triangle pattern which could break either way. Whether my call for more downside in crude oil plays out or not will likely determine if my XOP scenario continues to play out or not.

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May 25, 2016 9:12am|Categories: Completed Trades - Short|Tags: , |6 Comments

6 Comments

  1. schooner May 25, 2016 9:17 am at 9:17 am

    Crude inventories at 10:30

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    • rsotc May 25, 2016 9:59 am at 9:59 am

      Thx for the heads-up schooner. A bullish or bearish crude report is likely to impact the equity markets as well.

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      • schooner May 25, 2016 10:51 am at 10:51 am

        Looks like it took the crude traders a little while to digest the reports — what I’m hearing is that they didn’t like the gas build, but for the moment it looks like this has capped a breakout. XLE has retraced exactly 50% of this morning’s move. Watching it closely to see if it consolidates or comes back in. So far the broader averages are pretty much ignoring all this.

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    • schooner May 25, 2016 10:08 am at 10:08 am

      I agree. Crude has traded up to the previous highs as it waits, and it really acts like it wants to break out. The stocks are certainly on that page. If that’s what happens, then all the big sectors will be bullishly in gear.

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  2. jegersmart May 25, 2016 10:05 am at 10:05 am

    Should be a reasonable draw at Cushing at least – say -750 to -850?

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  3. jegersmart May 25, 2016 10:42 am at 10:42 am

    Ah well, -650k – not too far out 🙂

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