Oil is seeing some action today jumping up to $51.88 this morning. Prices are selling off a bit now, and closing today below $51.00 could suggest a top.

-XLE- Prices gapped through the trendline and above the 50-day EMA. Closing below the trendline would signify an unsuccessful breakout attempt.

(Click on image to enlarge)

I still have 25% of my original short position and may add to it if crude closes the day below $51.00. If achieved, I’d use a stop just above today’s high ($51.88) or the 62% retracement level a few ticks above $52.00.

Note: I will watch the miners and post an update later this afternoon. Breaking below yesterday’s lows in DUST and JDST would be a negative development. However, rallying to close above their 10-day EMA’s (DUST $30.18 & JSDT $14.43), would be a positive.