Trading Idea - Is SPDR S&P Oil & Gas Exploration & Production close to Support?

Published on Monday, 06 February 2012 09:56 Written by Christian Paolinetti

New York, February 6th (TradersHuddle.com) - Shares of SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) are trading very close to calculated support at $53.99 with current price action closing at just $55.91 places the stock price near levels where traders will start paying attention.

SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP)is a fund that seeks to replicate as closely as possible, the performance of an index derived from the oil and gas exploration and production segment of a United States total market composite index. The Index represents the oil and gas exploration and production sub-industry portion of the S&P Total Stock Market Index. The Fund generally invests all, but at least 95%, of its total assets in the securities comprising the Index. In addition, the Fund may invest in securities that are not included in the Index, futures, options, swap contracts and other derivatives, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds.

Traders wanting to establish a position should place close attention to SPDR S&P Oil & Gas Exploration & Production's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $57.32 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP)is a fund that seeks to replicate as closely as possible, the performance of an index derived from the oil and gas exploration and production segment of a United States total market composite index. The Index represents the oil and gas exploration and production sub-industry portion of the S&P Total Stock Market Index. The Fund generally invests all, but at least 95%, of its total assets in the securities comprising the Index. In addition, the Fund may invest in securities that are not included in the Index, futures, options, swap contracts and other derivatives, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds.