Thursday, November 26, 2015

Obama pardoned the wrong Turkey: Middle East unrest possibly bullish for energy ($XOI, ERX, XLE)

I don't feel like writing very much after a mediocre review on my clinical performance today but I noticed something when I was reviewing my energy index $XOI. I previously wrote how $XOI was in an ascending bearish triangle and that a retracement would likely take it to around 1140. Well it appears that another bearish ascending wedge is developing with two very good taps on the diagonal support line (at 1140 and 1170) meaning that for me an ascent is going to take place from here before having to worry about an eventual breakdown. The narrative that has emerged here is that this is a response to the general confusion and Middle East unrest. Energy is listed as a strong long/buy. $XOI target set at around 1300.