Getting The Jump On Energy ETF's 30% Spike ... What's Next?
by Mike Paulenoff
November 14, 2021 • 12:00 AM EST
Two months ago, on the afternoon of September 13, Mike Paulenoff brought to the attention of MPTrader members the intriguing and potentially opportunistic technical setup exhibited by the XOP -- the SPDR Oil and Gas Production and Exploration ETF.
Mike wrote: "I am not sure what the backstory is on this potentially very bullish technical setup will become (inflation, delivery problems, confrontation in the OPEC producing states, frigid winter in the US and Europe?), but one look at my attached Big Picture Chart suggests strongly that XOP has been under accumulation for nearly 2 years, 3 months, which has carved out a large inverse Head and Shoulders Bottom... XOP today is trading above ALL of my near and intermediate-term MAs, which are clustered together in a relatively tight area beneath the price structure, 'threatening' to propel XOP to the upside towards a confrontation with multi-year resistance at 98 to 100... if taken out, will trigger MUCH HIGHER PROJECTIONS for XOP."
The rest, as they say, is history! Within a week of Mike's "heads-up" to mptrader members, XOP was climbing sharply, a rally that spanned a 7-week period, and propelled the energy ETF to a 2-1/2 year high at 112.85 last Monday, a full 30% above the level XOP was trading (87.13) when Mike issued his "heads-up" technical alert.
What's next for XOP? Is the energy sector due for a pause? Will it participate and possibly drive a year-end rally in the benchmark indices? Join Mike and our MPTrader members for ongoing intraday discussions about energy and XOP, as well as many other stocks, macro indices, ETFs, cryptocurrencies, and commodities.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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More Top Calls From Mike
One week ago, on Monday morning November 15, Mike Paulenoff posted the following alert for MPTrader members about HD (Home Depot):
"My attached Big Picture Daily Chart shows that all of the action off of the 10/27/21 ATH at 375.15 into last Fri's close at 372.63 exhibits the right look of a high-level bullish Pennant or Flag formation atop the upleg that started at the 10/10 low at 324.16.
Early on October 15, when CVS Health Corporation (CVS) was trading at 85.92, Mike Paulenoff highlighted upside opportunity for MPTrader members, writing:
"For the past 5 months, CVS has gone pretty much nowhere after hitting a new 6 year high at 90.61 on 5/25/21. It is precisely because CVS has traversed a sideways price path since late May that makes my work interpret the CVS technical setup as extremely promising for a run above 90.61 towards 100, and possibly 108-110 in the upcoming weeks and months.
On the morning of October 14, Mike Paulenoff posted the following time-sensitive comment about CHWY (Chewy Inc) to MPTader members:
"CHWY has the right look of a very mature correction from its ATH at 120 (2/16/21) to Monday's (10/12/21) low at 60.45, which represents a 50% haircut from the ATH. As of this moment, with CHWY trading at 62.72, my work does NOT yet have confirmation that THE LOW has been established.
In his September 30th chart analysis for MPTrader members, Mike Paulenoff wrote bullishly about AMD, noting:
"AMD has piqued my interest technically because all of the price action off of its ATH at 122.38 (8/04) into the September lows at 99.51 (9/20) and 99.81 (9/29) has the right look of a complete, or nearly-completed correction of the prior major advance off of the 5/13 low at 72.50. As long as the 99.
MRNA's August downside reversal from a new all-time high (ATH) at 498.60 (8/10/21) to 349.00 (8/16/21) was just the first shot over the bow of a larger-developing corrective pattern and period.
Thus warned Mike Paulenoff to our members on the afternoon of August 16th, when, with MRNA trading at 363.
