We're seeing a huge move in crude oil prices after a drone strike in Saudi Arabia derailed global supply. 

While the country expects to get production back up and running soon, the U.S. is taking measures as well. President Trump tweeted about being open to using strategic reserves, as well as trying to fast-track more pipeline permits.

The U.S. produces a ton of oil and many producers have been waiting for a spike in prices -- either due to higher demand or lower supply, the latter of which is happening now -- in order to increase production.

Despite the drone strike news being a well known event by midday, crude oil investors continue to buy the dip. Since Friday's close, crude prices are higher by 13.6%, currently trading at $63.34 per barrel.

We outlined the must-know levels for oil earlier in the session, but let's look at energy stocks since the Energy Select Sector SPDR ETF (XLE) is up "just" 3.5% on the day.

Trading Energy Stocks

Daily chart of the XLE stock.
Daily chart of the XLE stock.

You can see a daily chart of the XLE above, while below is a weekly look.

One can clearly see the downtrend channel (blue lines) that had been in place for quite some time. You may also notice the gap-up strength on the daily chart above, sending the XLE well above its 200-day moving average. On the weekly chart, similar action propelled the stock over its 50-week moving average.

It's got investors looking for continued upside, particularly given the strength in crude oil.

Should crude oil continue higher in the coming days and weeks, it could ignite a big-time rally in what has been a very lackluster sector in 2019. From here, maintaining above $62.20 would be best for bulls.

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Weekly chart of the XLE stock.
Weekly chart of the XLE stock.

In order to get a sense of how the XLE might perform, investors may want to keep an eye on some of its top holdings. Most notably, Exxon Mobil (XOM) makes up roughly 23% of the XLE portfolio, while Chevron (CVX) makes up ~22%.

ConocoPhillips (COP) , Schlumberger (SLB) and EOG Resources (EOG) round out the top five, making up 5.77%, 4.4% and 4.21% of the portfolio, respectively. Investors may also keep an eye on the VanEck Vectors Oil Services ETF (OIH) , which is up much more notably on Monday, climbing 8.8%.

Schlumberger is the top holding in the OIH, making up 20.8% of the portfolio. That's more than double the next largest holding, which is Halliburton (HAL) at ~10.2%.

For OIH (below), let's keep it simple. Over $13 is constructive for the bull case and keeps the 200-day moving average on the table. Below $12.90 is bad for bulls, putting it below a key level, as well as the 20-day and 50-day moving averages.

Daily chart of the OIH stock.
Daily chart of the OIH stock.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.