The Canadian Technician

Canadian Drillers Are Liking High Oil Prices

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This is a pretty simple story. Higher oil prices mean more drilling.

Drillers 20130904
Only one is missing the love of the market towards these drillers.

All of them are currently trying to bounce off the 10 week line. Usually a good entry in an uptrend where stops can be placed close by. As Crude retests the highs of Feb 2012, a break above would probably launch the industry group higher. 

Looks like most of them have been sideways for a month. They can do a lot of drilling over winter if budgets for new wells start to improve. But the first retest of the 10 week line is usually bullish.

Good trading,

Greg Schnell, CMT

 

Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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