Crude oil traded as high as $51.67 per barrel on June 9 and challenged that high on Oct. 10 with a day's high of $51.60. In between these highs the low was $39.19 set on Aug. 3; my annual pivot level of $44.07 remains a magnet.

This week's value level of $49.34 held on Monday and the upside in October is to $54.70, which is between my semiannual levels of $51.26 and $57.18. This week's high was a failed test of the $51.26 level.

The oil and gas industry has been facing the pain of an oil glut, but McDermott (MDR - Get Report) has been able to survive with a year-to-date gain of 56.4% versus a gain of 37.2% for crude oil. Since setting its 2016 low of $2.20 on Jan. 20, this "option on survival" has done just that with a gain of 138.2% from the low versus a gain of 95% for crude oil from its Feb. 11 low of $26.05. I call buying any stock trading between $1 and $3 a share as an "option on survival."

Shares of Diamond Offshore (DO - Get Report) , Noble Corp. (NE - Get Report) , Transocean (RIG - Get Report) and Tidewater (TDW - Get Report) are mired in bear market territory, down between 24.1% and 72.9% from 2016 highs set between March 4 and June 8. These stocks are also in bull market territory up between 20.4% and 45.4% since setting their 2016 lows.

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

 

The weekly charts show a red line through the price bars, which is the key weekly moving average (a five-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 crude oil.

 

Courtesy of MetaStock Xenith

The weekly chart for crude oil is positive with oil above its key weekly moving average of $47.38, but remains well below its 200-week simple moving average of $72.21, last tested during the week of Aug. 22, 2014, when the average was $96.17. The weekly momentum reading is projected to rise to 71.65 this week up from 61.48 on Oct. 7.

Investors looking to buy crude oil weakness should do so at $44.07, which is a key level on technical charts until the end of 2016.

Investors looking to reduce holdings should consider doing so on strength to $54.70 and $57.18, which are key levels on technical charts until the end of October and the until end of 2016, respectively.

Here's the weekly chart for Diamond Offshore.

 

Courtesy of MetaStock Xenith

The weekly chart for Diamond Offshore is negative but oversold with the stock below its key weekly moving average of $17.74 and well below its 200-week simple moving average of $40.98, last tested during the week of July 26, 2013, when the average was $71.05. The weekly momentum reading is projected to rise to 16.60 this week up from 11.66 on Oct. 7 coming closer to the threshold of 20.00.

A close this week above $17.74 with momentum rising above 20.00 will shift the weekly chart to positive.

Investors looking to buy weakness should do so at $13.88, which is a key level on technical charts until the end of this next week.

Investors looking to reduce holdings should consider doing so on strength to $24.20, which is a key level on technical charts until the end of October.

Here's the weekly chart for McDermott.

Courtesy of MetaStock Xenith

The weekly chart for McDermott is positive with the stock above its key weekly moving average of $5.03, which targets the 200-week simple moving average of $6.28. This moving average was last tested during the week of Sept. 14, 2012, when the average was $13.27. The weekly momentum reading is projected to rise to 58.19 this week up from 50.95 on Oct. 7.

Investors looking to buy McDermott should consider doing so on weakness to $5.12, which is a key level on technical charts until the end of this week.

Investors looking to reduce holdings should consider selling strength to $6.58, which is a key level on technical charts until the end of October.

Here's the weekly chart for Noble Corp.

 

Courtesy of MetaStock Xenith

The weekly chart for Noble is neutral with the stock below its key weekly moving average of $6.20 and well below its 200-week simple moving average of $21.13. This moving average was last tested during the week of Jan. 10, 2014, when the average was $32.00. The weekly momentum reading is projected to rise to 21.24 this week up from 14.89 on Oct. 7, moving above the oversold threshold of 20.00.

Investors looking to buy Noble should consider doing so on weakness to $5.49, which is a key level on technical charts until the end of 2016.

Investors looking to reduce holdings should consider doing so if the stock rises to $8.28, which is a key level on technical charts until the end of October.

Here's the weekly chart for Transocean.

Courtesy of MetaStock Xenith

The weekly chart for Transocean is positive with the stock above its key weekly moving average of $10.10 and is well below its 200-week simple moving average of $29.50. The stock has been below this moving average since gapping below it during the week of Oct. 10, 2008, when the average was $92.46. The weekly momentum reading is projected to rise to 29.66 this week up from 21.67 on Oct. 7.

Investors looking to buy Transocean should consider doing so on weakness to $9.92, which is a key level on technical charts until the end of this week. A pivot for October is $10.15.

Investors looking to reduce holdings should consider doing so if the stock rises to $13.48, which is the March 4 intraday high.

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 $3.21 and is well below its 200-week simple moving average of $33.22. The stock has been below this moving average since the week of July 11, 2014 when the average was $52.80. The weekly momentum reading is projected to rise to 17.55 this week up from 11.48 on Oct. 7 getting close to the oversold threshold of 20.00.

A close this week above $3.21 with momentum rising above 20.00 will shift the weekly chart to positive.

Investors looking to buy Tidewater should consider doing so on weakness to $2.88, which is a key level on technical charts until the end of next week. As the stock traded as low as $2.16 on Sept. 27 it became an option on survival.

Investors looking to reduce holdings should consider doing so if the stock rises to $4.30 and $5.31, which are key levels on technical charts until the end of October and until the end of 2016, respectively.

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