28 Aug '16, 11am

What Moving Averages Can Teach Us About O&G Stocks: I am not a person who uses technical analysis in analysing…

I am not a person who uses technical analysis in analysing stocks. Even then, I found the concept of moving averages (MAs) to be very useful in understanding Oil & Gas (O&G) stocks and developing investment strategies for them. The figure below shows a typical MA chart with several MA curves using Brent crude oil price as the basis. As we all know, when the spot price moves down, the shortest duration MA curve will move down first, before the longer duration MA curves follow suit. Conversely, when the spot price moves up, the shortest duration MA will move up first, followed by longer duration MA curves. Oil Price and Its Moving Averages We can assign O&G companies in different O&G sub-sectors to different MA curves. Exploration & Production (E&P) companies like KrisEnergy, which drill oil and sell in forward contracts of several months ahead, can be assigned to, say, …

Full article: http://thefinance.sg/2016/08/28/what-moving-averages-can-...

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cointelegraph.com 28 Aug '16, 11am

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