The big kahuna of integrated oils is looking very toppy and very heavy. As we speak, Exxon Mobil (XOM) is under pressure that is probing key support between 80.00 and 78.80, which if violated should trigger downside continuation towards a test of its sharply rising 200 DMA, now at 75.54. In that XOM represents about 12% of the ProShares UltraShort Oil & Gas ETF (DUG), a break of important Mar-Jun support should spike the DUG towards 32.00 quickly.
At this juncture, only a climb that sustains above 81.90 will neutralize my near-term negative outlook.
Originally published on MPTrader.com.