Oil & Gas … Breakout on Friday?

Repeating Pattern … ‘Spring-to-Up-Thrust’

When Oil & Gas Sector XOP, pushed above last week’s high, it negated the breakdown scenario.

At the same time, it opened another potential opportunity that may set-up this coming Friday … The 13th.

We’ve shown over and again, markets tend to exhibit repeating patterns. Things like trading ranges, terminating wedges, breakouts and breakdowns, are not new.

However, there’s a lesser-known characteristic; the tendency for a market to go straight from a Wyckoff ‘spring’, into an ‘up-thrust’.

That phenomenon is described at this link.

Currently, we’re about mid-way into the set-up as shown on the daily chart of XOP.

Oil & Gas XOP, Daily

Price action pushed below support (the spring set-up) and is now mid-way into that spring; potentially going straight into an up-thrust.

There was a reversal pivot on Fibonacci Day 5 (yesterday), which opens up the possibility of another time correlation at Fibonacci Day 8 … this coming Friday.

Before The Open

It’s about twenty-minutes before the regular open and XOP, is trading higher … further confirming we’re headed for a potential set-up and reversal (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

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