Following a price reversal higher, the momentum shift in the energy sector appears to be taking hold.
Although traders need to be selective (and use stops), it appears that the Oil & Gas Exploration Sector ETF (XOP) is embarking on another wave higher.
XOP and several individual Oil & Gas stocks look good here for a potential move higher. The price reversal in late March triggered an ellipse buy trading signal, and with momentum shifting higher now, we simply watch to see if stops at recent lows hold. $95 is a potential MOB band price target but managing the trade (taking profits) on the way up is key.
The author or his firm may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
