Energy ETF With Bullish Technicals [SPDR S&P Oil & Gas Explore & Prod. (ETF), Energy Select Sector SPDR (ETF)]

sellbuyMorpheus Trading:  In scanning the energy sector, we saw several energy ETFs with bullish basing patterns over the past five to six months. SPDR S&P Oil & Gas Exploration & Production ETF ($XOP) has been in base mode since topping out last October.

Since “undercutting” the prior swing low and finding support at the 200-day moving average in February, $XOP has been acting well and is now forming the handle portion of a bullish cup and handle chart pattern, which is usually a short-term consolidation or pause just below the highs of a base:

$XOP cup and handle

The handle, for the most part, is holding above the rising 20-day EMA, with one dip below which found support at the now rising 50-day MA.

The moving averages are now in order, with the 20-day EMA above the 50-day MA, and all three moving averages (20,50,200) trending in the same direction.

$XOP should eventually breakout from this handle and test the base highs on a pick up in volume.

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