The near-term targets in WTI Crude Oil were hit, and traders got a pullback to buy into.
Now is where things get tricky. The latest bullish reversal produced an ellipse buy signal and perhaps we test the MFU-4 price target at $115.20 (we already hit this and wrote about it here).
Only a break above $115 would signal a retest of the high and potential move to $127 (MFU-5 target). A move back under the recent low (latest reversal area) would bearish.
I still like the energy space and the $XOP. There are many stocks in this sector that continue to screen well in my work. ETFs like $XOP and $OIH allow trend trading exposure without stock picking.
Crude Oil Futures Chart
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