Bearish on XOP oil exploration ETF

Oil is breaking down for a few reasons right now. You can blame partly the politics from Washington DC. Since 200 billion dollar of duties were imposed on China by the US on September 24th, we have seen a top in oil. Now the biggest state owned Chinese refiner cancelled all contracts with the US and stopped the oil import.

Now there is also a risk that Saudi Arabia goes out of the OPEC and dump their oil on the market.

Fundamentally i expect more downside for the etf XOP. These are the top 10 holdings:

The chart is not looking good at all. We need a new low short term and then make a bounce. This looks like an interesting short opportunity to me!

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