Oil closed at $113.79 per barrel yesterday at the New York Mercantile Exchange and even rose to an all time high of $114.53 per barrel during yesterday's intraday trade. One of our editors wrote a study on this industry last month. This article is a follow up to that.

For the past few months now, oil has been soaring to new record highs. The question on when this will go down is on everyone's mind, but we can still find opportunities in this sector.

Dow Jones U.S. Oil & Gas Index - Daily Chart

The Oil & Gas index is now moving sideways for the past 9 months as seen in the chart above. However, we can also see that the index has just broke the resistance line (see dotted line above) and is on its way further up. This index can easily pass 700.00 if it breaks the all time high of 693. It is at this 693 level where we may see a tight fight between the bears and the bulls. Whoever wins this battle will conquer the index.

Currently, I can only be bullish in this index.  As oil goes up, so does this index. The major trendline is still intact and there are no signs of a reversal pattern. Critical here is the 700 level. Once this level is breached, then this sector and Oil, in particular, will head further up.