RSI AND VOLUME FLOW POINT TO DIRECTION SHIFT IN XOP

6 thg 1, 2023

XOP



Using XOP as representative of the Oil and Gas Exploration Industry.

Pearson's R^2 = 0.95 indicating strong tendency for signal to centralize around its multi-year linear mean (LM, 150.22).

Signal currently resides just above the lower third standard deviation (-3) off the linear mean(LM).

Statistically speaking it would be tough to hold this position for very long and I would expect for signal to either breakdown below the (-3) or mean revert upward toward the LM in the next couple weeks.

In this case a mean reversion up to the LM at 150.22 would be necessary for the current multi-year trend to be maintained at its current trajectory.


Trend breaks down with signal below the -3 (119.06).





Price declining into stronger relative strength and positive volume flow (VFI) can be a sign of the market 'absorbing' price at these levels.

This can be indicative of 'seller exhaustion' and often precedes an 'increased potential' for a directional change in price trend.

(NOT FINANCIAL ADVICE)

16 thg 11, 2023

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