Energy Revival:    

The exploration names within the diverse energy sector are decently behaving themselves. On a YTD basis, the XOP is higher by 3% while the OIH is down by roughly the same amount. When one looks at how far they are from their 52-week highs the XOP is 9% while the OIH is almost double that. Looking at the MONTHLY timeframe the same 150 area comes into play (from the symmetrical triangle on the WEEKLY) with that level being a bull flag trigger in a pattern that began in late 2020. The daily chart of the XLE shows a double-bottom trigger setting up but this is a top-heavy fund with CVX and XOM making up 40% of the ETF (each starting to diverge), and both of those names weak trading below their 200-day SMAs. Within the more nimble XOP, some leaders have exhibited force, like an SM trading right back to a 43.46 cup base breakout pivot which it took out just last Thursday. Monday it recorded a bearish engulfing candle after a shooting star Friday. FANG also registered a bearish engulfing candle today, and this is nothing out of the ordinary after both of these screamed higher by 18% the week ending 2/16. This sector in my opinion is just taking a breather before the next potential move higher.

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