O&G stocks stop dropping

Despite the alarming drop in the price of crude oil in the past few weeks (see weekly Chart 1),  there are tentative signs that the bottom is near. From monthly Chart 2, we can see that the long-term uptrend line is still intact. At the same time, we can that most indicators are starting to curve upward.


Chart 1: WTIC's weekly chart as at Jan 7, 2015 (Source: Investorshub)


Chart 2: WTIC's monthly chart as at Jan 7, 2015 (Source: Investorshub)

The prices of O&G stocks listed on Bursa Malaysia seem to confirm the possible bottom in the price of crude oil. We can see from the chart below that SKPETRO, COASTAL, UMWOG & ARMADA failed to retest its recent low despite crude oil price making new low in the past 2 weeks.


Chart 3: SKPETRO, COASTAL, UMWOG & ARMADA's weekly chart as at Nov 21, 2014 (Source: Tradesignum)

Based on the above, I think it is now a good time to start our slow accumulation of good O&G stocks at the current low prices.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, SKPETRO, COASTAL, UMWOG & ARMADA.