O&G stocks could be a BUY

In the current market correction, one sector that investors may look at is the Oil & Gas sector. The main reason is that Crude Oil price is making new high (see Chart 1 below) and this sector should see more activities in the years ahead.


Chart 1: Crude Oil October 2007 daily chart as at September 17 (courtesy of Barchart.com)

Below, I have appended the daily charts of 3 stocks that have corrected back to their respective uptrend line support or marginally below it. The violation of the uptrend lines in August for all 3 stocks are noted but the uptrend lines are drawn above the August troughs. The uptrend line support for Kencana is at RM2.25, for Ranhill at RM2.80 and for Sapcres at RM1.75.


Chart 2: Kencana's daily chart as at September 17 (courtesy of Quickcharts)



Chart 3: Ranhill's daily chart as at September 17 (courtesy of Quickcharts)



Chart 4: Sapcres' daily chart as at September 17 (courtesy of Quickcharts)