A further look at the energy sector after my blog post from yesterday … just as an aside, I started a short on the XLE etf at yesterday's HOD this morning at $79.50. I did it via the 2x Proshare "DUG" at $26.33. I plan to monitor and add to this trade if it works like I think it will.
Another Energy component is the oil service sector … much like the XLE chart that I posted yesterday, OIH is lagging the break higher that the markets are having here.
With triangle patterns, it is best to wait for the pattern to break either higher or lower instead of trying to guess which way it is going to go.
One stock that seems to be in a confirmed move is TranOcean (RIG) …
While keeping my eye on the OIH, I plan to try and short RIG on any push into that 50EMA area on the 30min chart ($72ish). Cheers … Leaf_West