Lower crude oil prices are a good thing for the global economy. But the oil and gas industry is facing the pain of an oil glut right now and an industry consolidation should be encouraged.

McDermott (MDR - Get Report) seems to be surviving on its own with a year-to-date gain of 47.8% on a barrel of crude oil up 12.6% year to date. At its low of $2.20 back on Jan. 20 the stock was an "option on survival," which I describe as a stock trading between $1 and $3 a share. So far this stock has been a survivor.

Shares of Diamond Offshore (DO - Get Report) , Noble Corp. (NE - Get Report) , Transocean (RIG - Get Report) and Tidewater (TDW - Get Report) have had trading opportunities this year but have returned to bear market territory, declining as the weekly chart for crude oil turned negative the week of July 8.

Here's the weekly chart for Nymex crude oil.

 

Courtesy of MetaStock Xenith

The weekly chart for crude oil is negative with oil below its key weekly moving average of $43.95. Oil has been below its 200-week simple moving average since the week of Aug. 22, 2014 when this average was $96.17. Today this average is down to $73.99. Weekly momentum is projected to decline to 29.31 down from 35.88 on August 5.

I show a monthly value level for August of $40.35, which held at the August 3 low of $39.19. My annual pivot remains $44.07. The 2016 high of $51.67 set on June 9 is between semiannual risky levels of $51.26 and $57.18.

Here's the scorecard for crude oil and the five oil services stocks.

 

The weekly charts shown below are mixed. The red line through the weekly price bars is the key weekly moving average (a 5-week modified moving average). The green line is the 200-week simple moving average considered the "reversion to the mean." The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicates overbought and readings below 20.00 indicates oversold. A negative weekly chart shows the stock below its key weekly moving average with weekly momentum declining below 80.00 in a trend towards 20.00.

Here's the weekly chart for Diamond Offshore.

 

Courtesy of MetaStock Xenith

The weekly chart for Diamond Offshore is negative with the stock below its key weekly moving average of $22.98 and well below its 200-week simple moving average of $43.27. The weekly momentum reading is projected to decline to 34.22 down from 44.20 on August 5.

I do not have a value level at this time for shares of Diamond Offshore. Investors looking to reduce holdings should consider doing so on strength to $22.10 and $24.33, which are key levels on technical charts until the end of August and the end of 2016, respectively.

Here's the weekly chart for McDermott.

Courtesy of MetaStock Xenith

The weekly chart for McDermott is positive but overbought with the stock above its key weekly moving average of $4.91 but still below its 200-week simple moving average of $6.52. The weekly momentum reading has been on the cusp of the overbought threshold of 80.00 since the middle of July.

Investors looking to buy McDermott should consider doing so on weakness to $4.03, which is a key level on technical charts until the end of August. Investors looking to reduce holdings should consider selling strength to $6.52, which is the 200-week simple moving average.

Here's the weekly chart for Noble Corp.

 

Courtesy of MetaStock Xenith

The weekly chart for Noble is negative but oversold with the stock below its key weekly moving average of $7.82 and well below its 200-week simple moving average of $22.27. The weekly momentum reading is projected to be 11.12 this week, well below the oversold threshold of 20.00.

Investors looking to buy Noble should consider doing so on weakness to $4.42, which is a key level on technical charts until the end of August. Investors looking to reduce holdings should consider doing so if the stock rises to $8.24 and $9.88, which are the declining 50-day and 200-day simple moving averages, respectively.

Here's the weekly chart for Transocean.

Courtesy of MetaStock Xenith

The weekly chart for Transocean is negative with the stock below its key weekly moving average of $11.05 and is well below its 200-week simple moving average of $31.13. The weekly momentum reading is projected to decline to 59.84 this week down from 66.48 on August 5.

Investors looking to buy Transocean should consider doing so on weakness to $6.82, which is a key level on technical charts until the end of August. Investors looking to reduce holdings should consider doing so if the stock rises to $12.54, which is a key level on technical charts until the end of 2016.

Here's the weekly chart for Tidewater.

Courtesy of MetaStock Xenith

The weekly chart for Tidewater is negative but oversold with the stock below its key weekly moving average of $4.46 and is well below its 200-week simple moving average of $35.12. The weekly momentum reading is projected to be 11.94 this week, well below the oversold threshold of 20.00.

Investors looking to buy Tidewater should consider doing so on weakness to $1.80, which is a key level on technical charts until the end of August, which would make the stock an "option on survival". Investors looking to reduce holdings should consider doing so if the stock rises to $4.64 and $6.68, which are the declining 50-day and 200-day simple moving averages, respectively.

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