WTIC: Possible Temporary Bottom Formed

Crude oil prices have been dropping in the last few days. It closed at USD48.40 yesterday, just a dollar shy off  its intermediate uptrend line, SS. With the sighting of a hammer, there is a good chance the bottom -at least a temporary one - is near.

  
Chart 1: WTIC's daily chart as at Mar 13, 2017 (Source: Stockcharts.com)

 Many of our O&G stocks dropped quite drastically in the past few days- mirroring the fall in crude oil prices. My favorite, SKPetro even broke uptrend line. It tested the support from the horizontal line at RM1.75.


Chart 2: SKPetro's daily chart as at Mar 13, 2017 (Source: MalaysiaStock.biz)
 
Hibiscus, the smallish O&G stock, dropped back to its uptrend line, SS at RM0.40. 


Chart 3: Hibiscus's daily chart as at Mar 13, 2017 (Source: MalaysiaStock.biz)

If WTIC can stage a recovery next few days, our beaten down O&G stocks could be attractive buys today.

For those who are curious about the outlook of CPO, my chart (CPO prices in USD) tells me that we are likely to see further weakness next few weeks and a test of the support at USD500 before recovery set in.


Chart 4: CPO's weekly chart as at Mar 13, 2017 (Source: Investing.com)

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.