Thomas
DeChastelain
Memorial Archives

Oil Sector Charts and Commentary
posted Jan 21, 2006 at 12:08AM

Crude Oil Daily



Crude Oil COT Data

Crude Oil Weekly



XOI Daily



XOI Weekly



Discussion

As anticipated crude bounced nicely off its 200 dma. So nicely that it has put in some bullish buy signals on the weekly charts.

If you remember I was of the mind that the crude oil sector would be in a long running correction before the next bullish phase got going in earnest. The wild-card here of course is Iran.

Right now I am in buy and hold mode for energies. I may sell some uranium stocks, but that is only so I can get some exposure to golds. The oils I want to keep, and nothing short of global economic break-down would make me change my mind.

The "Iran" story will have good legs and will not go away, although it will waft in and out of the market's radar. Iran is why I think dips will be bought, and it will provide a floor for the sector as a whole.

The fact that the stocks are alrealy testing new highs before crude, can be taken as an overall bullish sign.

The reason I like the oil sands as a sector is that they give the promise of long-life reserves. I think the market will be willing to pay an ever-increasing premium for these reserves. Even more so given their relatively stable political situations.

As well "oil sands" is a easily promotable "hot" story.

Below are the charts of various junior oil sands plays. HAO is the most speculative. CWPC is also speculvative, but has incredible "blue sky" potential. UTS is perhaps the "safest" in terms of identified reserves, and big money backing. They do have a ton of shares outstanding, have only part ownership, and a long road to hoe before production starts.

Cll is my favourite

Of course no reccomendations as all charts are overbought, but I think you should look at them if you are of the mind to beef up a long term energy portfolio.


Some Oil Sands Juniors







Bullet Bullet Bullet