Energy-related companies are back in the spotlight after crude oil recovered along with equities this week. From a technical perspective, here are two energy companies and one utility stock with the best charts.
U.S. Silica Holdings
In this daily chart of U.S. Silica Holdings (SLCA) - Get Report , we can see a base pattern from August through March. In April we can see a golden cross of the 50-day simple moving average line and the 200-day average. Prices are still above the rising 50-day and 200-day averages. The on-balance-volume, or OBV, line is pointed up from lows in October and January and supports the rally. There are no bearish divergences between the price action and the momentum study.
In this three-year weekly chart of SLCA, we can see that prices are above the rising 40-week moving average line. The OBV line on a weekly timeframe turned up in January and the moving average convergence/divergence oscillator is bullish.
Superior Energy Services
In this daily chart of Superior Energy Services (SPN) , we can see a base pattern from August into April of this year. There is a bullish gold cross of the 50-day and 200-day averages in May. The OBV line is positive, and there are no bearish divergences from the momentum study.
In this three-year weekly chart of SPN, we can see the big slide down from the 2014 peak. In the past few months, prices have stopped going down, they have rallied above the 40-week moving average, and the slope of that long-term average has turned positive. The OBV line is moving up to confirm the price action, and the MACD oscillator is above the zero line -- also supporting the bull case.
In this daily chart of PPL (PPL) - Get Report , we can see a steady rise the past year. There is a golden cross in October and prices have remained above the rising 200-day moving average line. Recently prices have declined below the 50-day average. The OBV line has been up the past 12 months, telling us that buyers of PPL have been more aggressive than sellers for some time now. This by itself is very bullish. Perhaps prices have dipped recently because of the bearish divergence in May and June between the higher price highs and the weaker momentum readings.
Overall, this weekly chart of PPL is still bullish, but the recent price action shows the near-term correction. Prices are pulling back down to the rising 40-week moving average line. The OBV line is bullish, but there is a dip this month. The MACD oscillator is bullish and above the zero line, but it has narrowed to a recent liquidate-longs sell signal. I suspect this correction in PPL is relatively short-lived and prices move higher.