Retail investors can gain exposure to the oil markets by using ETFs. One of them is the SPDR S&P Oil & Gas Exploration & Production ETF XOP.
The ETF follows the price of oil closely and that’s a good thing because oil may be about to rally.
The ETF has dropped to $75.50. This important level was resistance in July. Levels that were resistance can convert into support and that could happen here.
Back in July, XOP ran into resistance around $100 and this level appears to have turned into support. A new uptrend may be about to form in this ETF. If oil rebounds, XOP will follow.
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