Deep Test For XOP
XOP is either in a deep test at the Fibonacci 76.4%, retrace level (distance between black lines), or it’s getting ready to post new recovery highs.
Volume was moderate with no overt indication either way.
A higher open at the next session would most likely indicate trouble for a short position (not advice, not a recommendation).
However, one has to realize we’re at extremes in price and most likely sentiment as well.
Looking at the weekly gives a better perspective:
We’re keeping the finger close to the sell button (for inverse DUG) but are not convinced the short set-up has been invalidated (not advice, not a recommendation).
Price action’s at a confluence of trend lines and resistance. Some type of trend confusion is to be expected.
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