Possible inverse head and shoulders pattern on the daily although the neckline shows weakness as the continuation of the downtrend is possible. The pattern is forming near a past demand region of 34-35 may break the downtrend since Sept 2016. RSI has been increasing since March with a dip below 34.50 bought on May 4th and 5th. Something to watch for a reversal. Took a position in GUSH the leveraged version of XOP at 29.20, with a stop loss at 28.01 below the prior days low for XOP of 34.83. If stop is triggered will wait for a re-entry above 36.22.
Economic reasons include Saudi and Russian talks to continue to cut production despite higher U.S. Output and Increased inventories. Will be looking for confirmation of a positive move from the EIA crude oil inventory report released on 5/24, a decrease in the inventory could mean higher prices for UKOIL.
Economic reasons include Saudi and Russian talks to continue to cut production despite higher U.S. Output and Increased inventories. Will be looking for confirmation of a positive move from the EIA crude oil inventory report released on 5/24, a decrease in the inventory could mean higher prices for UKOIL.