NEW YORK (TheStreet) -- Action Alerts PLUS holding Occidental Petroleum(OXY) - Get Report made a small double top around $100 last year and has corrected down to the $65 area, as seen in the chart below. There is now a bullish divergence between the price action this summer and the higher lows from the momentum study since July. This tells us that the rate of decline in prices has slowed. This kind of bullish divergence can foreshadow a rally.

The most exciting part of this chart, below, is the On-Balance-Volume (OBV) line which has been rising for some time. A rising OBV line says that volume has been heavier on the days that OXY has closed higher. Someone has been accumulating OXY on the decline this year.

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Action Alerts PLUS holding EOG Resources(EOG) - Get Report , below, shows a similar decline as OXY but with an important difference. We have bullish divergence with price and momentum, but the OBV line only turned up at the end of September. Buyers have returned to EOG but only recently. Prices have rallied sharply and are testing resistance around $90, so a period of sideways consolidation would not surprise us in the near-term.

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Schlumberger(SLB) - Get Report was discussed in this column on August 26 and again on October 5 where we said that a rally to $78 would break the negative chart pattern. SLB has rallied to $77 plus with the OBV line improving. SLB looks like it can now break out over its September highs and test resistance in the $82-$85 area.

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