I am happy with my exposure to oil, of course in hindsight I would have bought more, but that's always the case. Right now I have a comfortable buffer between spot and my entry price.
This is a rare event and my RSI indicator is showing the most oversold reading since 1986 and the second most oversold reading in 3 decades. Price can go lower of course, but its a good place for me to start.
I will add if we break to new lows on spot crude
or
I see a TA momentum buy signal on my weekly oil chart.
My target for a recovery price in oil is 80USD in the long term. That should net me a 50% return, probably more as the shares may be leveraged to the oil price.
I still see that a move toward the 40 range is a possibility, with a new range established between 45 and 80 per barrel.
IMO this new range will see more market share return to OPEC and also flush out the higher cost producers in shale and tar sands.
Just like the gold sector needed a shakeout, the oil sector has followed suit, but I don't expect the bear market in oil to last anywhere near as long as it has for gold, unless stocks sell off and oil follows stocks down.
