Oil and Gas Stocks Outlook for Monday, October 23
Oct 23, 2017 Trading Blog
Let’s hope there is more XOP action this week than there was last week. We are still stuck in that 33.25-34.25 range, with the occasional test of the boundaries of 33.00 and 34.50.
Last week we got a test of the lower boundary in the XOP and there didn’t really seem to be anyone interested in selling. Any stops that were there were likely cleared out. In order to take this down further, we would have to see a new round of selling, but I just don’t see anyone out there willing to take that role right now. If we can’t find any sellers, then the first wave of buying should push this right back to the top of the range this week.
Outlook for Monday: I’m looking for an early dip down to test last week’s low and then a constant rise throughout the rest of the week back up to the 34.50 level. If for some reason sellers do show up, we have the 50 day moving average sitting just underneath at 32.66 to provide some solid support.
Trading Plan for Monday: I’m waiting for a dip off the open to find a spot to get long. The ideal place to put on a long would be a test of last week’s low at 32.94. The best approach may be to let it drop and test that level and then judge the volume on that drop. If the volume is light, then let price climb just above 33.00 and then hit it long with a stop down around the lows. If this trade doesn’t work, I’d be willing to try the exact same setup using the 50 day moving average for the same long approach. If both of those failed, then obviously the trend has changed to a bearish tone.
Sorry for the lack of posts last week, but without any real movement in the XOP, there just wasn’t much to write about. Hope this week is better and will give me something to write about and to trade.