Oil looking good for a continued move higher in the short term. Coming over extreme oversold levels as shown by the Stochastics and RSI, we should see the MACD cross over with a move through the $44 level. Should we get this push through the $44 level, we can expect to see $46 tested once more (which Iam expecting to play out). If you were nervous about the geo political landscape, you could run with a $42 stop loss.
This would obviously bode well for the domestic Oil players. Playing it through OSH as liquidity is more kind than WPL.
Same again with the technicals, I think we are going to see the Stochastics come out of the oversold region, with the RSI moving higher. MACD would be the final confirmation to look for, with the share price pushing the following levels;
1st stop - $6.67, 2nd stop - $6.76, if these levels can be taken out, then Iam expecting a push back to the 200 day MA at $7.00 (which would likely coincide with the move in oil back to $46 (or back to the 200 day ma at $49.70 in the near term.
OSH Price at posting:
$6.57 Sentiment: Buy Disclosure: Held
