The Buy Signal for Oil Is In

Source:

Jack Chan Technical analyst Jack Chan documents a major new buy signal for oil stocks and ETFs that will enable investors to hold for the long term.

$OSX has confirmed a new major buy signal, which can last for months and years.

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Speculation has now confirmed a pullback bottom; expect new recovery highs in coming weeks and months.

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The bottoming process continues with a breakout imminent.

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For the OIH, the upside price target is 55.

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For the XLE, the upside price target is 95.

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For the XEG.to, the upside price target is 20.

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Subscribers were advised to diversify into USD beginning in 2011, as the loonie topped. The Canadian dollar is now a buy, and investors can scale in for the long term.

Summary

With a new major buy signal in place and the cycle having bottomed, investors can cost average in on oil stocks and/or ETFs, and hold for the long term.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Jack bought his first mining stock, Hoko exploration in 1979, and has been active in the markets for the past thirty seven years. Technical analysis has helped him filtering out the noise and focusing on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.

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Charts courtesy of Jack Chan