Technicals for some of the larger oil Companies
Todya we switch it up a bit with Rick Ackerman and take a look at some larger cap oil companies. Rick also shares his thoughts on over-bought technicals. Here are the stocks we look at today.
- Chevron – CVX,
- Devon Energy Corp – DVN,
- Permian Basin Rtly – PBT
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Click here to visit Rick’s website and learn more about his technical outlooks.
Rick is dead-on about overbought stochastic readings and I will add that the same applies to an overbought RSI. I can’t count the number of times I’ve had huge moves higher after the RSI went above 70. In fact, many consider a move above 70 to be a buy signal ( I do not).
The weekly PGM.V chart perfectly illustrates why it can be a big mistake to sell too much just because the RSI or STOs have become overbought.
That is a great point Matthew, and I’d only add that in the Bear market, when the RSI got above 70 or the stochastics showed and overbought signal, that often was a good time to lighten up on shares, as many were selling into the strength; however in the Bull Market, these indicators can just stay overbought while the stocks run. It took me a while to make this adjustment in March-June where I was guilty of selling too early. When you made comments like this earlier in the year it helped me rewire my thinking on these indicators. Thanks!
Like both you and even Gary Savage mentioned earlier in the year, there is a different playbook for bull markets than there is for bear markets.
Regarding the RSI, you can treat a 60 reading like 70 in a bear market (to start trimming earlier) and 40 like 30 in a bull market (to start buying earlier).
Nice. I had to read that twice. Now I’m eating rice…..
Thanks for the insight, Matthew.
Your generosity in sharing your knowledge is greatly appreciated.
All that kind of info is much appreciated for a amateur TA guy like me,
Thanks.Matthew.
Appreciate the analysis on the oils.
Mr. Big Al Korelin, Cory, Rick can you do analysis and opinions on Anadarko? APC. Please.
Also would like to hear Rick opine on SU and RDS.A. Thanks.
Oil is taking a rest and headed to 51. Good day to pick up some majors like BP and shell on the dip.
I would appreciate Ricks take on USO.
Nice pop in Tomagold-LOT.V since,
On May 11, 2016 at 1:30 pm,
Pete says:
I had forgotten about this Company,stumbled on an old article today.
They have a JV with IAMGOLD.
EM: TomaGold Corp. (LOT:TSX.V), for sure. TomaGold is a name I’ve been following for the last couple of years now and, together with IAMGOLD Corp. (IMG:TSX; IAG:NYSE), it continues to develop the Monster Lake project in Quebec. The high-grade results TomaGold has been able to issue have gotten many investors excited over the potential and economic viability of the deposit. If we were in a bull market for gold, there is no doubt in my mind the results that TomaGold has been able to release to the market would send the stock skyrocketing.
Because we are not in a bull market, it will take time but, unlike most junior explorers in the market today, TomaGold has IAMGOLD on its side; IAMGOLD continues to fund the project, so at least TomaGold is not pressed for time and funds. Make sure TomaGold is on your radar screen. TomaGold just issued some spectacular results and if it is able to continue its success with the drill bit, there is no doubt in my mind it will pique the interest of someone with a lot deeper pockets to take over the property. 3/4/15
It is with GREAT sadness that I have to announce that I have been FORCED to take PROFITS on USLV and ASM twice in two months! 10 & 15% net on USLV. 21 & 17% net on ASM. Sold 2/3 of my USLV total. Sold 100% of my ASM. Could have made 90% more but I got greedy. Mr. Fibonacci is in full control on this Silver correction. I need to learn more about this Fib guy and his retracements.
Comment section is priceless
Ha! Ha! – Markedtofuture – thanks for posting that. I expanded the comments section underneath and they were hilarious! 🙂
http://investorplace.com/2016/08/daily-market-outlook-look-market-break-soon/?sid=MP9435&cp=OZDT&ct=20160819&cc=eletter&en=3708747&cpp=OZDT&enn=3708747#.V7cyfxKhIwI