Strong call option activity is seen in XOP last week. Traders are betting on upside ahead for the oil and gas exploration ETF. The daily chart displays a C&H pattern with two handles for the cup. The 31.21-ish level is key. A break-out above 31.21 will open the door for the cup and handle pattern to send price to 38.42 (bottom of cup at 24).
The green lines in the margin show how a break-out from a C&H is typically bot. When price breaks out above the cup brim, in this case 31.21, that would be a buy point, then price will usually place a quick high and come back for a back test, that is another potential entry point, and, if successful for the bulls, price will ramp higher again, and the point at which price overtakes the initial spike high, that would be another potential entry point.
Bears will win going forward if they can sink price below the support at 28. If that fails, 22-24 is likely. Keystone is not in XOP currently but watching it with interest for a potential long trade. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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