Looking For The Breakout … That Fails

At this juncture, oil futures are in a minor ‘spring’ position, ready to move higher (not advice, not a recommendation).

The gap lower open discussed in last night’s update, has been closed (as expected).

What we’re looking for now (for potential XOP short), is a push higher in the futures (CLM25) to the 60 – 61 area.

Oil & Gas Sector ETF, XOP, Daily

At mid-session, XOP is trading right at resistance.

Note: Two gaps straddle the wide-high volume bar of April 3rd. As we know, wide, high-volume bars, tend to be tested.

That’s what we’re looking for.

An upside test of at least one of the gaps that fails; thus creating a Wyckoff up-thrust (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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