Crude Oil Price Soars = Invest in Oil & Gas Stocks?


Crude Oil Year 2016 Performance


In the month of January and February 2016 we were still looking at Crude Oil Price trading at the price of $26.00. Over the past 12 months we’ve seen Crude Oil Price now trading at the price of $50.66. Absolutely fantastic! So that means we invest into the Oil & Gas stocks in Malaysia?

Malaysia Oil & Gas Stocks


If you are one of the investor holding onto this Oil & Gas stock you will see the value of this stock not going up but DOWN instead from RM1.57 in Year 2015 to RM0.500 in Year 2016 December. How many -% of losses? You can do your maths quicker. Price staying below its EMA200days = Downtrend/Bearish stock. Regardless of Crude Oil going up over the past 12 months, Oil & Gas Stocks shows otherwise in the price in technical analysis. A Downtrend/Bearish stock is only always as good as trading for short term rebound only JUST like how you observe the price failed at each point when it hit nears its EMA200days. Until its evidently proven that price stays above its EMA200days, this stock will still be classified as a Downtrend/Bearish stock. So why hold a Downtrend/Bearish stock?


Another darling Oil & Gas Stock to many investor/trader. As illustrated on the chart above, a Downtrend/Bearish stock is only as good as trading for its short term rebound. Just like how I plotted on the red circle each time it failed at its EMA200days.


Another Oil & Gas darling stock goes from the value of RM0.800 to only RM0.310 in Year 2016.


Darling Oil & Gas Stock fallen from RM3.40 towards RM0.720 in Year 2016.


I once invested into this stock back then in Year 2013 when it was RM0.900, sold at good profits at RM1.50. Since then this stock is now worth only RM0.210.

Cheap is good.

But knowing when is the right timing to get into these stocks matters the most to your time and effort.

Then how does a stock’s price staying above its EMA200days looks like?




William Au

10 Years Position Equities Trader

Founder of

Chief Equities of TFM