Oil Stocks Looking Bullish

The oil stocks have been a bit challenging to trade lately with many mixed signals until now, Below is a  weekly chart of XLE (energy stocks)  and in the lower pane is a weekly chart of Crude oil.

If you look closely at the chart you will see a divergence that's taken place over the last 6 weeks. While crude oil has made a new swing low the XLE has made a higher swing low. This in my opinion is bullish for XLE as it shows there are buyers supporting the market.

Right now XLE is up against a rather significant resistance level at 70 to 71 but given the recent divergence between crude oil and oil stocks I am leaning towards a significant breakout to the upside for XLE.