NEW YORK (TheStreet ) -- Share price weakness among oil and gas drilling stocks presents a buying opportunity as they have significantly underperformed crude oil.
Oil and gas drilling and exploration companies have tanked year to date, including Diamond Offshore Drilling (DO ), down 31.6%; Noble Corp. (NE ), down 10%; and Transocean (RIG ), down 17.9%, while oil and gas drilling and servicing company Tidewater (TDW ) has plunged 30.7%.
Meanwhile, the price of a barrel of Nymex crude oil closed at $52.77 per barrel on Thursday, down by less than just 1% year to date.
On Thursday, we took a look at the weekly chart for crude oil, which showed that oil had a negative weekly chart, with the commodity below its key weekly moving average of $57.21 and below its 23.6% Fibonacci retracement level of $60.11 of the popped crude oil bubble.
Here is the daily chart for crude oil:
Courtesy of MetaStock Xenith
The daily chart for crude oil
shows the formation of a "death cross" on Sept. 3 following the June 3, 2014, intraday high of $107.67, which was a failed test of a key level on technical charts for that time frame.
The sideways price pattern around that Fibonacci level of $60.11 between May 5 and June 24 was nearly strong enough to establish a "golden cross" for oil. This hasn't happened as the 50-day simple moving average of $58.81 remains below the 200-day SMA of $60.51.
Here are their performance measures and investment guidelines for the four oil and gas stocks:
Diamond Offshore Drilling closed at $25.12 on Thursday, down 31.6% year to date after setting its 2015 low of $23.74 on Tuesday. The stock has been under a "death cross" since July 29, 2013, with the 50-day SMA of $29.94 still below its 200-day SMA of $32.36.
The weekly chart is negative but oversold, with the stock below its key weekly moving average of $27.86 and its 200-week SMA of $55.13.