ENERGY SPDR CLEARS 200-DAY LINE -- THE OIH IS RISING EVEN FASTER -- TIDEWATER, HALLIBURTON, AND BAKER HUGHES LEAD -- CRUDE OIL CHALLENGES OVERHEAD RESISTANCE
ENERGY ETFS CLEAR THEIR 200-DAY AVERAGES... Energy stocks are continuing to show new market leadership. They're getting help from rising oil prices. Last Thursday's message showed the Energy SPDR (XLE) testing its 200-day moving average. Chart 1 shows the XLE moving decisively above that long term resistance line. It's also trading at the highest level since August. Another energy ETF is doing even better. Chart 2 shows the VanEck Vectors Oil Services ETF (OIH) showing a much largerpercentage gain and moving even closer to its August high. Its stronger performance can be seen by the rising OIH:XLE ratio (solid line). which is exceeding its August high. While both energy ETFs are rising, the rising ratio shows the OIH rising at a faster pace than the XLE.
OIH LEADERS INCLUDE TIDEWATER, HALLIBURTON AND BAKER HUGHES...Three individual stock leaders within the OIH are shown below. Chart 3 shows Tidewater (TDW) trading well above its August high and trading at the highest level in eight months. Chart 4 shows Halliburton (HAL) trading above its August high today. Chart 5 shows Baker Hughes (BKR) challenging its June high. Crude oil is also rising.
CRUDE OIL TESTS OVERHEAD RESISTANCE... Last Thursday's message showed oil testing overhead resistance formed during September and October. Chart 6 shows the United States Oil Fund (USO) close to exceeding those previous peaks. An upside breakout by oil would be supportive to the two energy ETFs shown above. And the stocks.
