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Big Oil On Fire

Today the major market indexes are all soaring higher in a broad based advance. The large integrated oil companies are soaring higher helping the major stock averages to trade sharply higher. As we all know by now these companies have some of the largest market caps in the stock market. Therefore, when these stocks move the indexes will move as well.

Exxon Mobil Corp (NYSE:XOM) is the largest stock in the market with a market cap around $279 billion. Today this stock is trading higher by 1.32 to $59.48. As long as the stock market stays strong Exxon Mobil Corp has room to trade higher in the next few days to weeks. This stock will have daily chart resistance around $60.50 level which happens to be the daily chart 50 moving average. Should the stock trade above that resistance area it will have much more resistance around the $62.00 level.

Chevron Corp (NYSE:CVX) is trading sharply higher today by 1.55 to $73.72. This stock is now trading above the daily chart 50 moving moving average. This stock looks as if it could have further upside as long as the stock market holds up. The next important resistance levels for Chevron Corp is $74.60, and $75.70.

ConocoPhillips (NYSE:COP) is another leading integrated energy company that is trading higher by 1.31 to $53.44. This stock will have minor resistance around the $54.00 level and more around the $55.00 area. Should the stock market hold up and not break down these upside resistance levels are likely to get tested.

When the major integrated energy stocks are trading sharply higher the stock market will usually soar higher. Today this is certainly the case as the major energy stocks are advancing sharply to the upside. However, while these stocks all have further upside potential the important resistance levels are not that far off.

Nicholas Santiago
Chief Market Strategist