XOM Follow Up

Yesterday after several XOM trades and a core position trend trade were all successfully executed, I opened a XOM November $85 call, this link takes you to yesterday's analysis of XOM as well as the equity play, ERX which I think works well too if you don't want to use options.

Here's where we are today and remember oil is not the same as oil Energy and XOM is closer to the Energy sector than just straight oil, that's the reason I chose a leveraged version of XLE with ERX. However gains in oil will help the energy sector, so if you didn't get involved with XOM, but may be interested, here's your update.

 In yesterday's analysis I explain the gist of this ascending wedge and how they react as well as the head fake move which is part of the basis of an XOM long.

To the far right is the break below the larger wedge above and then a bear flag that consolidates in an upward sloping parallelogram as all flags should (against the preceding trend), the break under that is a smaller head fake, this is what I tried to explain in a recent video, how small head fake moves are like small fuses that light and prime larger fuses like the larger move below the ascending wedge.

Therefor my targets are at minimum an entry back in to the flag to stop out recent shorts, 2 a move above it which will do the same more effectively and 3 a move back inside or even above the ascending wedge's apex which would be a beautiful short set up as squeezed shorts provide the upside momentum. I'll be setting alerts for each area.

The 10 min 3C chart looks good, it went negative and price fell, this is when we closed our last XOM long, now it is positive and leading positive and I suspect we just saw a head fake move as the overall rounding price pattern is the reversal process we look for and is about the right size.

I drew in what I expect to happen with price and 3C shortly.

This is actually a low risk entry as a stop can be placed below recent pows and really be pretty minimal exposure.