Lots of recent buzz surrounding a possible resurgence of oil and oil related investments.  We are observing the weekly chart of XOI, the oil and gas ETF which gives us a top down view of the group.

A preliminary look reveals that this market has turned from a bearish to a more sideways tone. While it’s possible that the absolute bottom has been made, the prices are still below the 200 period moving averages.  A move above the 50 however makes us pay attention. What is also clear from the chart is that prices have stalled in the 1300 area, an area that was formerly support in early 2015.  We do note that the 1250 peak was successfully tested recently during the late November market rally that drove the broader markets higher.  Since that successful test, prices have come back to the previous resistance area of around 1200, now support.

A check of the RSI reveals little, although if the indicator can turn up at this 50 area, it will be bullish.  The ADX DMI indicator below the price chart also looks uninteresting for now since no trend is apparent.  The individual issue that tracks the XOI is XOM.  Longer term, there is very good correlation between the two as you would expect.  Given the tepid looking chart on XOI, there doesn’t appear to be any rush to jump into XOM.