Oil giants Chevron (CVX) - Get Report and Exxon Mobil (XOM) - Get Report  have a number of things in common besides being in the same troubled sector.

Shares of both set multiyear lows on Aug. 24 when stock markets around the world experienced flash crash opens as a result of China's "Black Monday." Both have positive weekly charts with solid gains so far in the fourth quarter. Both are components of the Dow Jones Industrial Average I:DJI  and among those six stocks considered "Dogs of the Dow." 

Most significantly, both will be putting recent strength to a test when they report earnings before the opening bell on Friday, and both will be vulnerable if the Nymex crude contract ends this week with a negative weekly chart.

Analysts expect Chevron to earn 79 cents a share and Exxon Mobil to earn 89 cents a share. TheStreet Ratings rate both companies at hold.

Chevron and Exxon Mobil shares are up 11.2% and 9.1%, respectively, in October against the Dow Industrials' 8% gain. But it is a different story when looking at the year to date. Chevron stock is down nearly 22% for the period, Exxon Mobil's is down 12.3% and the Dow is down just 1.4%. Meanwhile, crude oil is down 4.2% so far in October and down 18.9% for the year to date.

Here's the weekly chart for crude oil.


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Looking from left to right, observe the inflation of the oil bubble as the Nymex crude oil futures contract set an all-time high of $147.27 per barrel in July 2008. The popping of this bubble resulted in a multiyear low of $33.20 in January 2009. Note how the 200-week simple moving average (in green) was a magnet as the reversion to the mean between October 2009 and September 2014 when oil began to plunge below this key moving average and traded as low as $37.75 during the week of "Black Monday" in August.

The weekly chart shifts to negative if oil closes Friday below its key weekly moving average of $45.76. The weekly momentum reading is projected to decline to 56.74 this week, down from 57.21 on Oct. 23.

Momentum scales from 00.00 to 100.00, with a reading below 20.00 oversold and a reading above 80.00 overbought. This study is shown in red along the bottom of the chart.

Here's the daily chart for Chevron.


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Chevron stock closed at $87.69 on Tuesday. The stock has been under a "death cross" negative technical indicator since Oct. 22, 2014, when the 50-day simple moving average declined below the 200-day to indicate that lower prices ahead. The close that day was $114, so the stock did decline. Currently, Chevron stock is above its 50-day simple moving average of $81.40 and below its 200-day simple moving average of $97.14.

Here's the weekly chart for Chevron.

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The weekly chart is positive, with the stock above its key weekly moving average of $86.24. The stock has been below its 200-week simple moving average since the week of Jan. 16, 2015, with this average now at $112.01. The weekly momentum reading is projected to rise to 70.51 this week up from 61.17 on Oct. 23.

Investors looking to buy Chevron should place a good till canceled limit order to purchase the stock if it drops to $86.23, which is a key level on technical charts until the end of October.

Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $92.96, which is a key technical level in play until the end of 2015.

Here's the daily chart for Exxon Mobil.


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Tuesday, Exxon Mobil shares closed at had a close of $81.11. This stock, too, has been under a "death cross" since Oct. 1, 2014. The close that day was $92.86 so, as with Chevron, the stock has fallen. It is above its 50-day simple moving average of $75.70 and below its 200-day simple moving average of $83.17, nearly tested last Friday.

Here's the weekly chart for Exxon Mobil.


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The weekly chart is positive, with the stock above its key weekly moving average of $78.97. The stock has been below its 200-week simple moving average since the week of March 13 with this average now at $89.74. The weekly momentum reading is projected to rise to 74.91 this week up from 65.16 on Oct. 23.

Investors looking to buy Exxon Mobil should place a good till canceled limit order to purchase the stock if it drops to $75.35, which is a key level on technical charts until the end of October.

Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $92.40, which is a key level on technical charts until the end of 2015.

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