Basics:
- XOP is essentially a high-beta play on crude oil and E&P stocks, meaning its performance tends to amplify moves in oil prices
- Oil markets are sensitive to geopolitical volatility (e.g., tensions in the Middle East - think what's happening in the world)
- Crude oil chart, and opinion of experts seems to be that oil is due for a breakout soon and money will begin to rotate into the energy sector
Chart (Weekly):
- The weekly downtrend started the week of 4/8/2024
- Low made on 4/7/2025- since then the price created a bottom at $122ish and has been consolidating in the 120-140 range from June 2025 until last week of January 2026
- Week of 2/2 so far is a continuation candle on increased volume
- Overall volume increased happened on the breakout which is always a good sign
Plan:
First target is $160 which I believe should come quick
End trade if weekly candle closes below $135 which would invalidate previous breakout
Looking at June 2025 $140 calls which will sell as price approaches 160
- XOP is essentially a high-beta play on crude oil and E&P stocks, meaning its performance tends to amplify moves in oil prices
- Oil markets are sensitive to geopolitical volatility (e.g., tensions in the Middle East - think what's happening in the world)
- Crude oil chart, and opinion of experts seems to be that oil is due for a breakout soon and money will begin to rotate into the energy sector
Chart (Weekly):
- The weekly downtrend started the week of 4/8/2024
- Low made on 4/7/2025- since then the price created a bottom at $122ish and has been consolidating in the 120-140 range from June 2025 until last week of January 2026
- Week of 2/2 so far is a continuation candle on increased volume
- Overall volume increased happened on the breakout which is always a good sign
Plan:
First target is $160 which I believe should come quick
End trade if weekly candle closes below $135 which would invalidate previous breakout
Looking at June 2025 $140 calls which will sell as price approaches 160
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.