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Tickers in this Article: UGP, CRR, CLB, EEP
As I've mentioned in prior articles, one way to screen for the strongest stocks is simply to find stocks trading near all-time highs. Stocks that are trading close to all-time highs have very little resistance above, as the majority of traders are showing a profit. More likely, the only traders in pain are short sellers or traders who may have missed the opportunity to get long.

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In looking through a dwindling list recently, I was surprised to find some oil-related stocks holding up through the recent market correction and within spitting distance of all-time highs. The reason I found that surprising is that this sector has really been under pressure lately following the massive BP (NYSE:BP) oil leak in the Gulf of Mexico. It hasn't seemed to matter whether stocks are directly impacted by the spill either, as the selling in this group has been broad. However, the following stocks have held up through the recent weakness and remain a rally away from reaching all-time highs.

Ultrapar Participacoes S.A. (NYSE:UGP) is an oil stock trading near its all-time high, which stands near $51. In fact, UGP attempted to make a run at this level yesterday and is also in the process of clearing a very large base. UGP has been trading in a 10-point range for several months with sellers consistently stepping in near $50. UGP reversed quite sharply during yesterday's breakout attempt and thus should be watched closely to see if buyers step back in.

Source: StockCharts.com


Core Laboratories (NYSE:CLB) is an example of an oil-related stock that is only a few days removed from tagging all-time highs. Much like UGP, CLB pulled back off those highs and is in the process of bouncing off its 20- and 50-day moving averages. CLB was one of the leaders in this space through the last bull market and could be resuming a leadership role now.

Source: StockCharts.com


Carbo Ceramics (NYSE:CRR) is another stock in this sector making an assault on its all-time highs. It had a breakaway gap yesterday and finished about $1 off its all-time highs. One concern with this stock is that its recent base can be classified as a little loose, but on the weekly chart the stock looks very healthy.

Source: StockCharts.com


Enbridge Energy (NYSE:EEP) is an oil stock that is a little farther away from its all-time highs than the others, but could challenge them with a breakout from its base. The all-time highs currently stand at $61.82 and the projected target of a successful breakout from its current base would be near $64 per share. Near term, the price level to watch would be the top of Enbridge's base near $54. (For more, see A Guide To Investing In Oil Markets.)

Source: StockCharts.com


Bottom Line
It's interesting that these stocks have managed to hold near all-time highs, while others in this sector have been crushed. One reason to keep an eye on these stocks is that the general markets are quite oversold at this point and they are also in a sector that has been under pressure for weeks. If this group can find some relief at a time when the markets attempt to bounce from their lows then they could surge to all-time highs.

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At the time of writing, Joey Fundora did not own shares in any of the companies mentioned in this article.

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