Related: Once Sluggish Energy ETFs Gain Momentum
True to its name, XOP allocates over 78% of its weight to companies engaged in oil and gas exploration and production. Refiners and downstream names represent 16.25% of the fund’s weight with integrated oil stocks accounting for the remainder of the fund’s roster.
“Over the last few years, XOP looks to be creating another pennant pattern. The top of the pattern comes into play as resistance just above current prices,” reports ETF Daily News. “If XOP can breakout, it should attract buyers similar to 2013. Keep a close eye on this pattern, as pennants often frustrate both bulls and bears and large moves take place once the pattern breaks.”
For more news on oil ETFs, visit our energy category.