Six Energy Stocks That Buck the Trend

This column was originally published on RealMoney on June 20 at 11:58 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.

Energy stocks got ripped apart in the spring correction, along with every other market sector. Even the bullish performance of the crude oil futures hasn't stopped these equities from spiraling through their worst decline in four years. And no one knows if the group hit bottom last week or is headed for another down leg before starting to recover.

But not every oil and gas stock dropped like a rock in recent days. A few stalwarts have gone their own way, holding up well in an extremely adverse environment.

Today, let's look at six of these top performers so you know where to find the best opportunities when the broad sector finally moves higher.

McDermott(MDR Quote) is a worldwide energy services company. The stock rallied to an all-time high of $49.33 in May and started to pull back.

The monthlong decline to support at the 50-day moving average has been constructive, with longer-term accumulation staying well intact. This is bullish for a summer recovery.

The pattern shows little resistance from current price levels back into a test of the May peak. This is in stark contrast with the vast majority of oil and gas stocks. The lack of overhead supply suggests that price can easily rally above its recent high and start a new leg in its three-year uptrend.

Dril-Quip(DRQ Quote) designs and manufactures offshore drilling equipment. The Houston-based company hit an all-time high in May and sold off in a seesaw correction. Notice how it's crossed the 50-day moving average eight times in the course of this pullback. This action suggests that price eventually will hold support and move higher.

But narrowing highs and lows recommend caution, because the stock could be in the middle phases of triangle development. This pattern would stall upward progress and yield a longer-term consolidation before price can challenge its 2006 high. The best plan of action for now is to stand aside and let the chart set up a few more weeks.