The energy space would be fully granted a reprieve for recent softness after the sustained run it has experienced. My belief is that there is a good chance that a tactical rally could be in the cards. Am I thinking a move back to all-time highs is in store? No, but a move of 10% higher here for the XOP is not out of the question. This ETF has been harder hit now 22% off its most recent 52-week highs, whereas the XLE is “just” 11% off its peak made last November. This is a clear indication of risk-off with investors’ affinity for larger cap more mature names within. Below is the chart of CVX which no doubt has some technical damage to work off. But has the sell-off gone a little too far? The doji candle Wednesday gives investors a good risk/reward scenario with a tight stop below that candle which is adept at signaling changes in the prevailing direction. A move below that and a quick descent to the 140 area which comforted the name last June-July and September comes into the picture.