Oil & Gas Exploration ETF (XOP) Is Testing A Breakout Level

From Chris Kimble: Oil & Gas Exploration stocks have been hit hard over the past few years, falling over 50%. Could an opportunity be at hand in this hard-hit sector? It’s certainly possible.

Below looks at the chart of the SPDR Oil & Gas Exploration ETF (XOP) over the past few years.

As you can see, XOP has struggled this year, inside of the falling channel highlighted above. It is testing dual resistance at (1), as momentum of late was low and is attempting to create a series of higher lows.

A breakout at (1), would be bullish for XOP and could attract buyers for this hard hit sector.

The SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) was unchanged in premarket trading Thursday. Year-to-date, XOP has declined -20.32%, versus a 12.90% rise in the benchmark S&P 500 index during the same period.

XOP currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #23 of 36 ETFs in the Energy Equities ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.