Is a rotation back into energy underway? $XOP – July 20, 2023
This is Scott with your Chart of the Day. I want to bring your attention back to some of the oil and gas stocks.
It seems like energy has caught a bid recently, and myself and Dan Fitzpatrick, from StockMarketMentor.com, were talking about XOP ( NYSEARCA: XOP ). Now, XOP ( NYSEARCA: XOP ) closed above the 200-day moving average for the first time since back in March.
It chopped around here as there was a bit of rotation out of oil and gas and into some high-flying tech leaders. And now with the breakdown of the QQQs ( NASDAQ: QQQ ) and some negative reactions to earnings, thanks to Tesla ( NASDAQ: TSLA ) and Netflix ( NASDAQ: NFLX ), etcetera, we are seeing a bit of rotation out of tech and potentially into oil and gas again.
What I like about XOP ( NYSEARCA: XOP ) is the fact that this is above and closed above the 200-day moving average. You can see, there have been some fits and starts, it hasn’t been a smooth ride. It tried, but the sellers came in and pushed it back down. The sellers came in and pushed it back down. Tried again, tried again.
And then today, finally back above and held above that 200-day moving average. So I think, from a short-term trade perspective, I think you can keep this on a watch list. And as long as it stays above that 200-day moving average, I think it is something that you could potentially get involved with.
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