Morpheus Trading: After pulling back in about 10% off its recent swing high, SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP) found support at the 50-day MA, where it has since been consolidating in a tight range.
The 50-day moving average has remained in an uptrend throughout the basing action. The 10-day moving average is currently below the 50-day MA, but it has stopped making lower lows the past few weeks:
As shown on the chart above, $XOP has established one higher “swing low” within the base on 11/19, and potentially a second higher swing low if Monday’s low can hold. It will be important for $XOP to close back above the 50-day moving average, as this would also result in a break of the daily downtrend line.