The price of oil continues to rise in 2018, already jumping by roughly 10% since the start of the year to over $66 a barrel from around $60. The price of oil has had a technical breakout over the past few days, and that could push oil prices higher over the next few months toward $75 a barrel, a rise of nearly 13% from its current price. It could also help to push the price of stocks like Halliburton Co. (HAL), Schlumberger NV (SLB), Anadarko Petroleum Corp. (APC) and Chevron Corp. (CVX) even higher.
On Jan. 5, an Investopedia article noted that shares of Anadarko, Schlumberger and Halliburton were breaking out and that each could advance by 15% or more. Of the three, only Schlumberger failed to reach its full potential gains before all gave back some of the profits. But now, all three stocks and Chevron look primed to rise again based on technical analysis, by 12% or more.
Anadarko shares have climbed by over 16% in 2018, and appear that they are nearing another potential breakout, after a period of consolidation. The chart below shows, that Anadarko's price is currently right below technical resistance at $63.75, and should it rise above resistance, it could be poised to increase to nearly $72.80, a jump of 16% from its current price.
Halliburton shares have given back nearly all of their gains from early January after breaking out, with shares down about 12% from its highs. But, the stock looks ready to rise once again, and should it rise above $50.50, the stock could see its price rise toward resistance around $59.25, a jump of nearly 18.5%.
Schlumberger fell well short of the previous resistance level, around $87.25, reaching a high around $80, a jump of only 11% from $72 at the time. But shares have successfully retested the lows around $61.40 and are back to $67.50 currently. Should the stock rise above $69.50, it could climb back to the previous highs around $81.50, a jump of nearly 21% from its current price.
Chevron has been trending higher since September 2015 and is about to cross over resistance around $120. Should that happen, the stock could see a significant jump back to the previous highs around $135, a rise of 12.50%.
Should these four stocks surge as the charts suggest, it will have to come on the back of strengthening oil prices. If oil does not continue to rally, it is likely these four stock will not continue to rally either.