Weekly Focus Chart: Energy Sector ETF (XOP)
The Energy sector remains our top ranked S&P 500 sector currently, as it has been for most of 2022.
Most energy sector earnings have been well received over the last two weeks, WTI crude oil reclaimed $90 on a weekly closing basis and OPEC may have put in a near-term floor at $75-80, with their recent supply cut announcement.
Our focus chart this week is the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
(XOP) broke out to a 20-week closing high on Friday, with a weekly close over a key 150 overhead level as well. (XOP) is trending higher, above rising weekly moving averages, and could be setting up for a test of new highs. This can be a volatile sector, as well as crude oil itself, so near-term consolidation wouldn’t be unexpected. On any major pullbacks, I’d want to see the 125-130 level hold.