Jim Cramer And Bob Lang Apply Technical Analysis On Oil Stocks

Jim Cramer spoke on CNBC's Mad Money about price action in major oil stocks and he tried to apply technical analysis with a help of Bob Lang of explosiveoptions.net to see where are these stocks going.

They noticed that big oil companies are showing signs of consolidation while crude oil is trading lower and they see it as a bullish sign. Williams %R oscillator for WTI crude oil is currently at oversold levels and Cramer thinks that this could mean a bounce in crude oil.

Cramer showed a chart of Exxon Mobil Corporation XOM, which according to Lang's analysis is ready to bounce as both RSI and Williams %R oscillator show that the stock is oversold and it is trading close to its support at $76.

Lang also likes Chevron Corporation CVX, but Cramer doesn't like it because Williams %R oscillator is oversold for months and the stock is trading lower. He also noticed head and shoulders pattern.

Related Link: Big Bottom For Big Oil?

EOG Resources Inc EOG bounced from $73 and now it is trading slightly above $77, which is impressive, thinks Cramer. Lang sees that as a bullish sign and he thinks that the stock could move to $80. The stock is testing the 50-month moving average and the last time it did that, it traded sharply higher.

Occidental Petroleum Corporation OXY has been consolidating for the last few weeks and it recorded a higher low and a higher high since Thursday. Cramer pointed to a bullish cross on MACD indicator and he sees the chart as a bullish with a heavy resistance at $76.

Cramer concluded that if MACD, RSI and Williams %R work, the oil stocks are ready for bounce.

Posted In: CNBCJim CramerTechnicalsCommoditiesMarketsMediaTrading IdeasBob LangCrude OilMad MoneyOil
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