Crude oil has traded down to an important price support zone and appears to be showing early signs of bottoming.
It’s still early, but should crude oil see a bullish reversal higher for a trade, I think the oil and gas ETF (XOP) will benefit.
I really like the trading setup on the oil & gas ETF (XOP) as price has come down to a confluence of price support at the MOB band and MFU-2 target zone (Money Flow Unit).
There are several select stocks I like here (for a trade), but it seems the basket of stocks held in XOP should be a good way to trade (and gauge) the initial move.
Traders should keep an eye on crude oil. As long as it holds above its trend line, then $XOP should benefit.
$XOP Oil and Gas Exploration ETF Chart
Crude Oil Futures Chart
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