Oil stocks, how low they can go?
Finally we see some correction in the oil stocks. Some of the oil stocks hit or break their 200 days MA level. Do you see them to go further down, or time to bounce back soon?
Best Answer
3963 points
MNSL answered one year ago …
Investors who took contrarian strategy are benefiting now. There is good demand for Airlines Stocks now. Recently some top oil and commodity investors bought stocks in different sectors such as Airlines instead of oil stocks.
I think this is not the time to invest in commodity related stocks. Most assets are overpriced now. Intelligent investors always will avoid hot sectors. Just like Airlines stocks, some neglected stocks will rise in next 18 months.
We must look for industries depend on certain commodity now. These companies will outperform the markets. In addition, change of currency movements also will benefit some companies now.
Answers
120 points
Baskerville answered one year ago …
May be, answer to that question has to wait as the next major support for oil is at $110. Even when the sector as a whole goes down, individual stocks are not affected the same way. Service and equipment guys are less affected than drillers and integrated biggies. But established and integrated companies may take the lead on the rebound due to their fat, deep pockets. So at this time it depends on whether one's time horizon is short-term (seller) or long-term (buyer).
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