Hi Shoppers,

Oil has had quite the ride.

Pretty much straight up since last summer until early June of this year.

SPDR S&P Oil and Gas Exploration (Ticker: XOP) went from $70 in August 2020 to $170 on June 8.

There have been twenty trading days since June 8 and XOP has only had three green candles in a sea of red, including one yesterday:

Not only that, but XOP has a doji formed on Wednesday.

Remember, a doji can be found at the bottom of a downtrend or at the top of an uptrend.

Its shape shows that the buyers and sellers are being equally represented in the marketplace.

A doji has upper and lower shadows and most importantly the real body (the green or red part) is very small or nonexistent.

This happens when the opening and closing prices are nearly the same.

The doji signals uncertainty, which can cause the change in trend.

Is oil ready to rally?

Maybe not all the way back, but I think it is ready to bounce from here.

Continue here to check out several other oil company charts and my idea on how to play it.

How Crude!

First let’s take a look at the crude oil futures chart:

It held that support area at $95.40. I would like to see it close above $104.50 to show more bullishness.

Besides XOP, there are a bunch of oil stocks that have dojis:

Energy Select Sector (Ticker:  XLE)

Exxon Mobil (Ticker:  XOM)

Chevron (Ticker:  CVX)

Devon Energy (Ticker:  DVN)

Schlumberger (Ticker:  SLB)

Transocean (Ticker:  RIG)

And they all have confirmations yesterday, meaning they have opened and traded higher.

For a quick, cheap shot on this I like the RIG calls expiring on Jul15:

The 3 strike calls are around $.30.

Trade Review

It took a couple days, but General Electric (Ticker:  GE) is ready to bust out.

Thanks for Reading … See You Next Tuesday.

Licia Leslie