inthemoneystocks Posted November 16, 2015 Report Share Posted November 16, 2015 Oil is bouncing off the $40 per barrel level again. This is the third time it has hit this level and bounced. In terms of technical support, this would be known as major support level. One interesting factor that should be noted as well, in August 2015, oil saw the high thirties briefly. This low remains intact and has not yet been violated. As long as oil holds the $38.25 pivot low, oil stocks should be looked at as long term bargain investments. Many oil names are trading at levels not seen in years. For example, Chesapeake Energy Corporation (NYSE:CHK) and Southwestern Energy Company (NYSE:SWN). Looking at the charts alone will make you shudder. That is usually a good reaction as it shows panic from investors. If logic prevails and the thought is that eventually, oil will grind up to the $75-$100 level again, these plays could literally double, triple and quadruple in value. It is almost wise to view them as an options trade. Sure, in a catastrophic event CHK or SWN could drop 50% or more, but the upside potential is epic with patience. In addition, we are not seeing investors like Carl Icahn dump his investment in CHK either. That is something to pay attention to. Gareth Soloway InTheMoneyStocks Link to comment Share on other sites More sharing options...
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