There haven’t been many places to hide during this year’s stock market correction (bear market?).
And one of the last hiding places could be in trouble: energy stocks. And more specifically, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) and the VanEck Oil Services ETF (NYSE:OIH).
In today’s chart 2-pack, we look at both of them and highlight why they are trading at critical junctures.
As you can see below, both ETFs are trading within falling channels. And both ETFs are testing the upper end of the falling channel after big 2-year rallies. We can also see that both Oil ETFs have produced long topside wicks, warning of potential bearish reversal patterns.
If selling ramps up here for both, the odds increase that the Energy game is over for a while. And that would be bad news for investors hoping the market correction ends soon.
However, if both ETFs were to break out from these 10-year falling channels, they would have significant upside potential. Big test for these Energy plays!