As stocks continue to rally and the S&P 500 is now higher by close to 17% year to date, individual groups of stocks continue to break out past clearly-defined resistance points. For example, two weeks ago the consumer apparel group made a move, followed by select technology stocks and of course the financials last week. And late last week some notable oil and gas companies came on my radar as they pushed higher, bumping right up against key resistance points and in some cases already broke higher. The energy sector as a whole of course, represented by the SPDR Energy ETF (XLE), already rallied steeply off the mid April lows, as it bounced off its 200 day simple moving average (red line).
Exxon Mobil (XOM) also made a crucial move higher on Friday that pushed the stock into resistance near the $92 mark that dates back to November 2012. A break above there could quickly move the stock up to the October 2012 highs near $93.60.
Another name in the space that made a respectable move higher on Friday (+2.54%) was oil refining and transportation company Philips 66 (PSX). The stock’s move on Friday pushed it more meaningfully above its 50 day simple moving average (yellow line), something it hadn’t done in roughly one and a half months. This simple moving average had acted as great support since June 2012, thus making the moving average an interesting level to watch. Furthermore, Friday’s move pushed the stock just marginally past lateral resistance near $65.30, which had acted as resistance since early April. A continued push higher could move the stock up to its early April highs near $70 sooner rather than later.