Oil and Oil Stocks Continue Showing Strength

Today crude oil and oil stocks had large moves to the upside. The May contract for crude oil was up over 2 dollars closing at 61.88

The oil stocks I have long are having significant rallies with increasing volume as some of these stocks are breaking out.

Notice in the above chart of $XNG (nat gas stocks) the index is at resistance after having a large 4 day move. We may see some profit taking here, but I feel in the days to come the index will breakout.

If you look at the chart of USO (crude oil) it appears a reverse head and shoulders bottom is being formed with an upside target of 61.

I've been bullish on crude oil since mid January due to seasonality and cyclical patterns. I think prices should continue to trend higher into May.