If you think energy prices will continue to go up as the global economy recovers, you should look at the energy services sector for the best returns. This group’s stock returns tend to be leveraged to the price of energy. Among the best of the bunch is HAL. Presently trading at $30.40, the stock is right above its 50 day moving average of $30. The 52 week high low range is $14.68 to $32.00. Support levels for HAL are $26.50, $25.50 and $24.25, its 200 day moving average. Major resistance for HAL remains at $32. If this level is broken, the upside targets are $38 and $47. A good price point to buy the stock is around the $24 area.   

PEP stock has been trading around $61.26, right below its 50 day moving average. Less than stellar results on its top and bottom line took the pop out of this stock. Immediate support for PEP remain at $58 and $56, its 200 day moving average. As long as the stock stays above its 200 day moving average, the long term trend remains upwards. For investors, this is also a good level to go long the stock. Resistance for the stock are its 52 week high of $64.48, $72 and $75. Short term, PEP still looks like it wants to go lower. Buy this stock on major drops in prices.

F hit a new 52 week high of $10.37 yesterday. Looking at the charts, the stock looks poised to go higher. Ford have been profiting from the struggles of its Detroit counterparts, Chrysler and GM. Further more, Ford has a pipeline of new products and has made strides in improving the quality of their products. If the US economy improves, Ford is well positioned to benefit from any uptick in auto sales. Support for the stock lies at its 10 day and 50 day moving average, $9.80 and $8.50 respectively. Resistance for the stock are at $11.50 and $12.50. A good entry point for buying the stock is around $8.50.

Linux vendor Red Hat posted another strong quarter as their subscription third quarter revenue climbed 21%. What is attractive about RHAT is that 85% of their sales now come from renewable subscription contracts which are considered steady revenue. Yesterday, the stock hit a new 52 week high of $31.76. The charts suggest further gains for the stock. This is a stock to buy on dips. Major support levels are $28, its 50 day moving average, $25.50 and $24, its 200 day moving average. Unless its long term trend line, the 200 day moving average, is clearly broken, the stock is likely to move towards the upside. Currently, seasonal factors are in favor of the technology sector.       

Nothing like cold weather to give a boost to the widely followed natural gas ETF, the United States Natural Gas. UNG surged from its 52 week low of $8.50 to about $10.75 in a matter of weeks as cold weather hit the major natural gas consuming regions. Despite the bullish move, the fundamentals for natural gas still remain bearish. High production and weak demand means that inventories of natural gas will remain near historical highs. Technical indicators such as the MACD and slow stochastics show that the UNG is short term overbought. Support is its 50 day moving average at $10 and $8.50. Resistance remain at its 200 day moving average of $12. Sell UNG on strength. 

Shares of BA are acting strong, trading above its 50 day, $52, and 200 day, $46, moving averages. At Friday’s close of $53.44, it is close to its yearly high of $56.56. With its key product, the Dreamliner, finally getting closer to hitting the market, the stock is set to go higher. If $56.56 is broken on the upside, the next targets are $70, $78, $82 and $90. Key support levels for the stock are its 50 and 200 day moving averages and $38. If more orders for the Dreamliner come in and the company manages to meet their delivery targets, BA should soar higher. On any pull backs in BA, look to buy.      

RIMM is winning back investors’ good will by delivering better than expected quarterly results and also providing strong guidance for the next quarter. In after hours trading, RIMM surged to just over $71. As a result, the stock will finally trade above its 200 day moving average of $68. There is resistance at $71. If the stock manages to close above this level, it will likely close the downward gap from $82 to $71. Support for the stock is its 50 day moving average around $63. At this point, this is a stock to buy on dips.    

POT had a very nice run up from its November low of about $90 to $125 seen in early December. With the 10 day moving average, about $120, acting as resistance, the stock is probably set for a sizeable correction. If this moving average cannot be broken, the major downside targets are $110, $104.50, its 50 day moving average, and $95, its 200 day moving average. As 2009 winds down, investors are likely to lock in their gains. Resistance is its 52 week high of $124.10. Pricing for potash has probably found a bottom, providing support for the stock. A good entry point to go long the stock is near its 200 day moving average.     

Despite news that Citigroup intends to repay its government bail out loans, the stock is still facing stormy weather. Investors are worried about more equity dilution. With the sale of some its key assets and a weak American economy, the market is expressing doubts whether C can generate enough profits to support its stock price. Presently trading at $3.57, the stock is below its 200 day moving average of $3.80. If the stock continues to trade below this level, it indicates that the long term trend is towards the downside. The downside target is $2.60. If C can trade above the 200 day moving average, the upside price targets are $4.30, its 50 day moving average, and $5. 

The recent upward rise in the price of gold is clearly broken, taking the air out of gold stocks also. GG is no different. Most pundits expect gold to remain in a trading range, probably between $950 to $1,250, in order to consolidate its recent gains. The key for GG at this point is whether it can hold its 200 day moving average at $38.25. If the stock does manage to defend this level, the most likely scenario is for the stock to trade in a range of between $38 to $46. If the 200 day moving average is broken, the downside targets are $35.75, $33.50 and $32. The seasonal trade for gold is expected to last into February.