Will Oil Stocks Breaks Above Medium-Term Resistance Line?

Based on Oil Investent Update originally published on May 11, 2017, 3:29 PM

In recent weeks crude oil came back below the barrier of $50, which triggered declines and resulted in a drop to almost six-month lows. Despite this move, oil bulls pushed the commodity higher, which resulted in an invalidation of the breakdowns under important support levels. What happened at the same time with oil stocks? Will we see higher values of the XOI in the coming weeks?

Let’s jump right into charts (chart courtesy of http://stockcharts.com) and find out what can we infer from them about future moves.

Let’s start today’s article with the long-term chart of oil stocks.

Looking at the long-term chart, we see that the overall situation...