Click on Chart to Enlarge
The chart shows oil prices divided by oil stock prices.
Of note, when there have been major spikes lower in this ratio, oil has consistently rapidly rebounded.
The other instances showed quick gains of 50%+ in 3-6 months in oil prices.
So volatility is high, but the suggestion here is that short term trading systems can go into buy mode here with stops of course.
The chart shows that of the major lows on this chart, most of them lead to major advances of over a year in time. The early 2015 was a quick 50% rally in oil followed by lower lows, but still a good short term trade opportunity.
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