Oil Drillers have had little to smile about over the past years. Could this trend be about to end? A pattern is in play that highlights a counter trend rally could be near.

Below looks at the Oil Drillers (XOP)/ S&P 500 Ratio over the past couple of years.

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The ratio could be creating a double bottom at line (1), near the apex of a potential bullish ascending triangle at (2), as momentum is oversold and could be creating higher lows at (3).

Below looks at ETF XOP–

(Click on image to enlarge)

Drillers have had little to smile or brag about since 2014 highs, as XOP has declined nearly 65%. If XOP can breakout above resistance of the falling wedge pattern, it could become attractive to the bulls and create a counter trend rally.

If XOP breaks below support of the falling wedge would suggest that the down trend remains in play. We like the looks of this pattern on a risk/reward basis.