Wednesday, January 11th, 2006
Oil Light Sweet Crude-Continuous Contract (WTIC)
Today the OIL chart is bull flagging. What I want to know is this; what is going to happen to the stock market once oil gets closer to 70? The OIH, oil and energy stocks are the best performing sector this year. Once OIL breaks out, energy stocks are going to fly. There are currently 6 oil plays.
The Oil Services Holders ETF (OIH)
The OIH is up 12% this year. In addition, the stocks in this sector are suggesting that oil is bull flagging. The OIH monthly chart illustrates just how strong the OIH has been for the past 12 months. All indicators on the monthly remain in a full blown bullish trend reversal. PPO and stochastics remain very strong. The party is going to be in this sector. The weekly chart shows continued strength here as well. There is more room to go up in this sector and more so than any other sector at this point in time.
Ultra Petroleum Corp. (UPL)
On the Daily chart of UPL, we see that it is beginning to break out of it's ascending triangle. Today UPL closed on it's new 52 week highs at $60.90.
Even though the OIH is just hitting the low end of it's target, a lot of energy stocks are just now hitting new all time highs and just starting to breakout. I remain bullish and am raising price targets in this sector.