Prior to the attack, Brent crude oil was drifting lower- pressed by an intermediate downtrend line, RR with resistance at USD68. The downside would not valid the longer term uptrend line, SS with the support at USD55. This morning, Brent crude oil price shot to a high of USD71.95 but it has since dropped back below the intermediate downtrend line, RR. As the situation in the Middle East will remain fluid, the crude oil price may retest the downtrend line again in the days ahead.
Chart 1: Brent's daily chart as at Sep 13, 2019 (Source: Stockcharts.com)
Our Energy index has been trending higher ever since it broke above its downtrend line at the start of the year. I expect the index to test its recent high at 1130 tomorrow.
Chart 2: Bursa Energy index's daily chart as at Sep 13, 2019 (Source: Kenanga BTX)
I have short-listed a few O&G stocks that are rated as Out-perform by Kenanga for your consideration.
Table: Selected Kenanga Oil & Gas stocks