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WPX Energy Tracking the Oil Rally But Sees Resistance Ahead

WPX Energy (WPX) is not surprisingly tracking oil prices and has enjoyed a bounce in oil prices since the end of August, but not after both (stock and oil) dipped to new lows on the year. We saw ther WTI Crude Oil price climb back towards 50 after bouncing up from 38. For WPX, it bounced up from 5.24 and is not pushing above September's high of 8.52 as we can see in the daily chart. 
WTX Energy (WPX) Stock Rises and Oil Prices Rally -

WPX Energy (WPX) Daily Chart 10/7
(click to enlarge)

I wouldn't be too excited about this rally. I think there is some short-term upside still in this stock, but like oil prices, I suspect that the prevailing bearish bias and momentum is still in play. I expect WTI Crude to settle back around 50 after some short-term upside that has the 54 level in sight and limited to 57 in my opinion. WPX might have some upside towards the 10-10.10 level, but it will be challenged by a falling trendline, some key moving averages and a previous support pivot. Price action would also have completed an ABC correction. 

If oil prices does indeed find resistance and turn back down towards 50 and WPX stalls around 10.00, I would anticipate a dip in WPX at least back towards 8.00.