Saturday, August 20, 2016 7:52 PM EDT
Technical analyst Jack Chan documents a major new buy signal for oil stocks and ETFs that will enable investors to hold for the long term.
$OSX has confirmed a new major buy signal, which can last for months and years.
Speculation has now confirmed a pullback bottom; expect new recovery highs in coming weeks and months.
The bottoming process continues with a breakout imminent.
For the OIH, the upside price target is 55.
For the XLE, the upside price target is 95.
For the XEG.to, the upside price target is 20.
Subscribers were advised to diversify into USD beginning in 2011, as the loonie topped. The Canadian dollar is now a buy, and investors can scale in for the long term.
Summary
With a new major buy signal in place and the cycle having bottomed, investors can cost average in on oil stocks and/or ETFs, and hold for the long term.
Disclosure:1) Statement and opinions expressed are the opinions of Jack Chan and not of ...
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Disclosure:1) Statement and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
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I'd be safe and only buy the oil majors here. The simple fact is oil is looking better because small players are having to cut back and are going bankrupt. The pain at the bottom of the barrel will still be felt even if oil rises 10 or 20 per barrel. Simply put, their debt servicing for many small players won't cover their capital investment and maybe may not generate enough to keep operating. As some have found out, not developing their finds leads to a drop or disappearance of their reportable reserves destroying their asset as well as making it impossible to borrow.