Exxon Mobil's Failed Breakdown 🌤️ The Morning Print
Good morning!
The largest holding in the Energy sector is rebounding after a failed breakdown from a multi-month head-and-shoulders top.
Let's take a look.
Failed moves often lead to fast moves in the opposite direction.
That’s exactly what played out in Exxon Mobil.
What looked like a textbook bearish topping formation instead turned into a sharp reversal higher.
At the same time, the Energy sector ETF (XLE) has reclaimed its all-time high anchored VWAP, a sign that the average buyer from the top is now back in profit.
If Energy is gearing up for another leg higher, these are the kinds of failed breakdowns that can reignite momentum just as sentiment starts to sour.
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