• Energy XXI EXXI

The market, if you count today’s progress so far is up 7 straight days. With that being said, it is due for a pullback. 

Not a big one… just enough to cool itself off some. Somewhere in the range of 7-10 points or so. It is difficult for the market to move more than seven straight days higher. It happens, but it really starts struggling at that point. It is almost like trying to take Prius up Mount Fuji. It just doesn’t work well. 

With that said though, I have been watching Energy XXI (EXXI) for this entire week, and I’m starting to get to the point where I think I’m going to have to pull the trigger now on the stock rather than wait for later. 

You have a beautiful inverse head and shoulders pattern that has emerged, and that comes on the heels of a larger year long double bottom that has been formed and confirmed. 

The 200-day moving average does concern me some, but it hasn’t been tested in eons. So I’m not sure I can draw a valid opinion on the moving average at this point. 

Here’s the trade setup in EXXI:

Energy XXI EXXI 

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