Since the price has started to move up after reaching the triangle’s apex, a thrust to the upside is anticipated. The goal of a thrust to the upside is to transform the resistive high of the triangle (1,500 points) as well as the high of the breakout (1,700 points) into new support – in order for a new and sustainable upward trend to start thereafter. Hence, a +23 percent move of the XOI is expected in the short-term. A major sell-signal is generated only when the price drops below the (green) support currently at around 1,200 points (as a thrust to the downside threatens).
The XNG natural gas company index has been moving hand in hand with the XOI index. In 2013, the price succeeded in rising above the (red) triangle leg at 700 points, whereafter a +38 percent breakout to 965 points occurred. The subsequent pullback to the apex of the (red-green) triangle at 700 points marks the end of the triangle. Since the price has started move up lately, a thrust to the upside is anticipated with the goal of transforming the all-time high at 965 points into support in order for a sustainable upward trend to start thereafter.