Crude Oil – May stabilize from 75 to 80

In scrutinizing the following chart, I think the possibility of crude oil prices stabilizing from 75 to 80 is very high. Moreover, based on history, Crude Oil prices tend to rebound when it touched the said support zone.

Crude Oil 16102014

Besides, as we all know, decline of oil prices also impact the performance of oil exploration/production and services companies. Here, I posted two ETF charts: “XOP – SPDR S&P Oil & Gas Explor & Product” and “OIH – Market Vectors Oil Services ETF”.

  • XOP – The S&P Oil & Gas Exploration & Production Select Industry Index represents the oil and gas exploration and production sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Oil & Gas Exploration Index is an equal weighted market cap index
  • OIH – The Index is a rules based index intended to track the overall performance of 25 of the largest U.S. listed, publicly traded oil service companies.

Both charts show that both indexes approaching its respective support zone. So, in theory, the indexes may stabilizing in the zone. Of course, I don’t eliminate the possibility of breaking below the support zone if the oil prices continue to decline.

XOP 16102014

OIH 16102014

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6 thoughts on “Crude Oil – May stabilize from 75 to 80

  1. Hi Chong,

    Your advice on SKPetrol and UMWOG, good time to buy now? If not, any recommendation? I plan to keep.

    Many thanks in advance.

    Cheers

    Like

    • I can’t advise, but I accumulated SKPETRO 3 times since it dropped dropped. Oil prices still not stable, so make sure you understand the possible downside risks. And what will you do if SKPETRO drops further in the short future?

      Like

  2. Hi LC need your advise on Dialog do you thinks it is a good time to buy this share as the price have dropped

    Like

    • depends on your risk tolerance, you can consider to accumulate, but be prepared for average down.

      for disclosure, my average price is 1.62, so I won’t accumulate for the time being.

      Like

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