The rising price of crude oil continues to pull the major equity averages higher, but strength in oil is not strong enough to lift all stocks in the energy sector. The smaller oil drillers and oil services players need significantly higher prices to rise with the major integrated oil and gas stocks.  

The Energy Select Sector SPDR Fund (XLE) - Get Report is the exchange-traded fund that best tracks the energy sector. This ETF has 40 components, but Exxon Mobil (XOM) - Get Report and Chevron (CVX) - Get Report are by far the largest components with weightings of 20.29% and 14.44%, respectively.

At around $57, the ETF is down 5.7% for the year so far. Exxon is up 5.2% for the same period while Chevron is down 5.2%.

The two oil giants should remain in investors' portfolios, if you want to be in the energy sector, with dividend yields of 3.66% and 5.02%, respectively. Chevron and Exxon are both components of the Dow Jones Industrial AverageI:DJI and have been members of the "Dogs of the Dow" in both 2015 and 2016.

But if you like dividend stocks you might want to consider buying these two oil giants and leave the ETF alone.

Crude oil could confirm a positive weekly chart with a close on Friday above its key weekly moving average of $33.02 confirming its Feb. 11 low of $26.05 as a near-term bottom. Weekly closes above a key technical level of $29.90 through March targets $44.07 a barrel by the end of 2016.

Here's the scorecard for the energy sector.

Image placeholder title

Here's the daily chart for Chevron.


Courtesy of MetaStock Xenith

Image placeholder title

Chevron closed Thursday at $85.30, down 5.2% year to date and in bear market territory 24.5% below its all-time high of $113.00 set on Jan. 2, 2015. The stock is up 22.6% since trading as low as $69.59 on Aug. 24.

The daily chart shows that the stock has been below a "death cross" since Oct. 22, 2014 indicating that lower prices lied ahead. A "death cross" occurs when the 50-day simple moving average falls below the 200-day simple moving average. After bottoming on Aug. 24, "Black Monday" in China, the stock has made several attempts to break-out above its 200-day simple moving average between Nov. 3 and Feb. 22 as the 200-day declined from $96.84 to $89.26.

Here's the weekly chart for Chevron.


Courtesy of MetaStock Xenith

Image placeholder title

The weekly chart for Chevron will end the week positive it the stock closes above its key weekly moving average of $85.73. The stock is well below its 200-week simple moving average of $110.41. The weekly momentum reading is projected to rise to 49.99 this week up from 45.61 on Feb. 19.

Investors looking to buy Chevron should place a good till canceled limit order to buy the stock if it drops to $78.41, which is a key level on technical charts until the end of next week. A close above a key technical level of $84.25 enhances the upside potential. This key level remains in play until the end of March. Investors looking to reduce holdings should place a good until canceled limit order to sell the stock if it rises to $100.84, which is a key level on technical charts until the end of 2016.

Here's the daily chart for Exxon Mobil.


Courtesy of MetaStock Xenith

Image placeholder title

Exxon Mobil closed Thursday at $82.01, up 5.2% year to date and in correction territory 12.2% below its all-time high of $93.45 set on Feb. 13, 2015. The stock is up 23.2% since trading as low as $66.55 on Aug. 24.

The daily chart shows that the stock has been below a "death cross" since Oct. 1, 2014 indicating that lower prices lied ahead. A "death cross" occurs when the 50-day simple moving average falls below the 200-day simple moving average. After bottoming on Aug. 24, "Black Monday" in China, the stock was temporarily above its 200-day simple moving average between Oct. 30 and Nov. 9, and has been back above its 200-day since Feb. 22. Between Oct. 29 and Feb. 24 the 200-day declined from $83.06 to $79.61.

Here's the weekly chart for Exxon Mobil.


ourtesy of MetaStock Xenith

Image placeholder title

The weekly chart for Exxon is positive with the stock above its key weekly moving average of $79.94 with the 200-week simple moving average of $89.20. The weekly momentum reading is projected to rise to 71.16 this week, up from 61.99 on Feb. 19.

Investors looking to buy Exxon should place a good till canceled limit order to buy the stock if it drops to $72.87 and $71.20, which are key levels on technical charts until the end of March and the end of 2016, respectively. Investors looking to reduce holdings should place a good until canceled limit order to sell the stock if it rises to $92.11, which is a key level on technical charts until the end of June.

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