No 3 Analysis Preview for 2012.
ENERGY - A QUESTION OF DIVERGENCE

The January Barometer is to date giving nothing more than a flat prospect for 2012 but there is still a few days to go. With this in mind it will be necessary to give the Sector analysis closer attention in order to isolate any sector which might outperform the indices. Gold was such a candidate and was highlighted in analysis No 2 for 2012 at the beginning of year with a little profit to date from the resultant buy signal for Comex Gold etc.

THE OIL SECTOR

The Oil Sector is of especial interest in view of the currently conflicting positions of Oil and Natural Gas. The FT350 Oil & Gas Sector has risen to historic highs and could suggest Buys on strength from here for the Bulls or shorting opportunities for the Bears. Indeed individual shares could produce satisfaction on both fronts.  

The same can be said for the Crude Oil and Gasoline charts where strength would be bullish and weakness bearish from current decision levels.

BP Amoco (see under) is a share which falls into line with our Sector analysis with both long and short opportunities possible although the angle is currently suggestive of a Short rather than a Buy as do the wider indices.

To read the rest of this article (Click Here)

Regards,

Fred Stafford.