3 Oil Stocks to Play the Crude Bounce

• Posted by Greg Harmon
• on May 17th, 2011

Crude Oil started the day lower today but then rebounded and held. The price action and chart had the look of a bounce. It may be short lived or a true bottom but for as long as it lasts these three Oil stocks look ready to ride higher with higher Oil.

ConocoPhillips ticker: $COP

ConocoPhillips has been basing for a few days and Tuesday put in a bullish candle. Along the way the Moving Average Convergence Divergence (MACD) indicator has been improving and the Relative Strength Index (RSI) has leveled. A move higher with Oil will see some resistance first at 74.32, the 100 day Simple Moving Average (SMA).

Hess ticker: $HES

Hess has been in a downtrend and lost the support area near 76 last week. But Tuesday it printed a bullish engulfing candle as the RSI turned higher and the MACD leveled. A move higher with Oil will see resistance first at 76 and then 78.8 and 80.

Occidental Petroleum ticker: $OXY

Occidental Petroleum, or OxyPete, has also been in a downtrend but printed a Piercing Candle on Tuesday with an RSI that started to turn and a slight uptick in volume. A move higher with Oil will see resistance first at 104 and then 106 before 107.75.

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