Scott still thinks $XOP is where you want to be – February 3, 2022
XOP LNG
This is Scott with your Chart of the Day. A couple of days ago I talked about LNG ( NYSEAMERICAN: LNG ). This was an idea that was shared in our Active Trading Forum over at stockmarketmentor.com. You can see that it did, as we expected, a nice move through this clearly defined level of resistance on higher than average volume.
Now today, it pulled back but it did hold above that daily 8-exponential period moving average. So although the stock is not ripping to new highs it is still holding up in trend. I also want to point out that when it did go up, it went up on pretty good volume and it pulled back on less volume, that’s what we want to see.
We want to see the bulls get aggressive. And then when it does sell-off a bit, it is more of just a calm breath that the stock is taking, not a rush to the exit. That is what I look at and that is what see when I see a nice pullback here, still in an uptrend, coming on low volume.
So I still believe that XOP ( NYSEARCA: XOP ) is where you want to be. And if I zoom out here on this ETF you can see it is very similar, a little bit like a cup, a handle, and again, we are right under resistance here on XOP ( NYSEARCA: XOP ).
So I think you want to keep an eye on this sector for a potential higher. Now, I have an alert on XOP ( NYSEARCA: XOP ) at around 112.80 and we want to see XOP ( NYSEARCA: XOP ) break out and do it on good volume, so that is what I will be looking for into tomorrow and next week. And I think it is worth keeping on a watch list for you as well.
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