Looking For A Potential Breakout In The Oil & Gas Exploration & Production ETF

sellbuyMorpheus Trading: The energy sector has held up well during the market correction, with crude oil, solar, oil and gas exploration, and oil services all showing tight price action on the weekly chart.

The iShares U.S. Oil & Gas Exploration & Production ETF ($IEO) has been trading in a tight range for several weeks, just below the highs of the current base. On the weekly chart below, we see the price action tightening up while holding above the rising 10-week moving average:

$IEO BREAKOUT

On the monthly chart, we see that $IEO is poised to clear the highs of 2011, which could enable it to surge much higher due to a lack of overhead resistance:

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