Major Resistance At XOM: 69 – 70
XOM’s the largest cap in the sector. We’ll use it as the proxy.
Last update has us exiting a short via DUG (not advice, not a recommendation) and standing aside for now.
It’s no secret the overall markets are insane … possibly in some kind of massive blow-off, FOMO top.
At the same time, they look like they’re ‘thinning-out’; that is, only a few are participating in the upward launch.
It’s a bearish warning
Thinning-out, tends to happen at the end or near the end of bull markets.
Looking For The Short
The big money’s made on the downside with down moves being two or three times faster.
The Daily closing chart of XOM above shows it’ still grinding itself higher.
Trend lines below say the upside may be reaching a limit:
If we zoom-in, it looks like there’s significant resistance at the 69 – 70 area for XOM … if it gets that far.
Looking For The News
With the current instabilities, world events, food supply, energy supply, earthquakes, volcanoes, we could get some kind of upset to launch the oil sector higher.
It may not happen.
If it does, that could be the time to re-enter short (not advice, not a recommendation).
Charts by StockCharts
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