During this recent move up in S&P (100 handles from the last bottom) Oil&Gas ($XOP) stayed one of the weakest sectors and specifically shares of Slumberger.
After exhausted move up on the end of June, it entered into correction and broke down its 50 EMA that was in control since the beginning of 2014.
Now, sellers keep preassure and hold resistance at $110 which could be stop line for short position.
My approach is active trade management. Initiate tier 1 now, then add on break down of $107.50 gap point, then add if it will close and hold below $105.39 with target at $102 - reasonable level, earlier it acted like resistance and now should act like support.
After exhausted move up on the end of June, it entered into correction and broke down its 50 EMA that was in control since the beginning of 2014.
Now, sellers keep preassure and hold resistance at $110 which could be stop line for short position.
My approach is active trade management. Initiate tier 1 now, then add on break down of $107.50 gap point, then add if it will close and hold below $105.39 with target at $102 - reasonable level, earlier it acted like resistance and now should act like support.