As of Dec. 26th USOIL has been on a reversal from its 2018 Q4 correction. On Jan 10th we broke through the resistance area of $51.25. The XOP as we all know is directly related to USOIL as it tracks an equal-weighted index of companies in the US oil & gas exploration & production space. The XOP's first resistance area that was broken through was $29.90.
As XOP continued to rise we hit our next level resistance on 1/9/19. Over the last 2 days we've had trouble breaking through the $30.73 mark. According to my charting we have approached the bottom of our 7 day channel. Our 7 day forecast would predict a bounce upward into the $31.34 area. However in the last 2 days we have been creating a rising wedge. We can see a breakout to $31 and up or a breakdown back to $29.73 and below possibly even to $27.50.
Friday Jan 11 Pre Market will tell us a lot about where we go from here.
If XOP has a breakout and move up look for:
Price Tgt 1 - $31.34
Price Tgt 2 - $32.70
If XOP hits resistance and falls look for:
Price Tgt 1 - $29.73
Price Tgt 2 - $27.50
Natural Gas futures have fallen in February while Oil futures are up in February. This could create a lateral movement in the XOP however I'm fairly confident in a Bullish move for the weeks coming up.
As XOP continued to rise we hit our next level resistance on 1/9/19. Over the last 2 days we've had trouble breaking through the $30.73 mark. According to my charting we have approached the bottom of our 7 day channel. Our 7 day forecast would predict a bounce upward into the $31.34 area. However in the last 2 days we have been creating a rising wedge. We can see a breakout to $31 and up or a breakdown back to $29.73 and below possibly even to $27.50.
Friday Jan 11 Pre Market will tell us a lot about where we go from here.
If XOP has a breakout and move up look for:
Price Tgt 1 - $31.34
Price Tgt 2 - $32.70
If XOP hits resistance and falls look for:
Price Tgt 1 - $29.73
Price Tgt 2 - $27.50
Natural Gas futures have fallen in February while Oil futures are up in February. This could create a lateral movement in the XOP however I'm fairly confident in a Bullish move for the weeks coming up.