• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 10 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 37 mins Starvation, horror in Venezuela
  • 19 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 5 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 6 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 18 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
Alt Text

What Happens To Syrian Oil Post-Civil War?

After years of conflict in…

Alt Text

Venezuela’s Key Refineries At Risk Of Seizure

A decade ago, analysts suggested…

Alt Text

Cracks In Global Economy Weigh On Oil Markets

Oil prices fell this week…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Oil Futures and the Equity markets

Last week’s article dealt with finding a good entry price for highly rated oil company stocks that appeared to be overpriced. The strategy was to identify a range then determine a value zone defined as 50% to 62% of the range. It basically identified areas that would be good to buy in the direction of the main trend. It’s a technique typically used by investors who are cautious about buying strength out of fear of buying a top.

The downside of this technique is that sometimes momentum takes over and the stock never reaches the value zone. Nonetheless, it is one strategy that should be kept in the toolbox of aggressive traders and more conservative investors. While waiting for a pull-back into a value-zone may be a valid strategy under certain trading conditions such as a strong uptrend, there are times when oil stocks are driven higher by other factors.

Oil company stocks are influenced by several factors. Simply stated, a portion of a strong rally is attributed to good earnings. Another portion just follows the broad-based market. Another part of the rally may be fueled by bullish fundamentals of an underlying commodity. When it comes to energy-related companies, for example, the price of oil often has a huge influence on a stock’s movement. However, not all oil companies move the same when oil prices spike higher. This makes sense because some oil companies deal with oil already in storage and others deal with it still in the ground.

Looking…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News