The last time it saw these lows, it had a massive rally, says Matt Maley, equity strategist at Miller Tabak.
“It got down to the $42.53 level, or $42.50, and that was the low it saw back 18 months ago in June 2017. Now after we saw that low, crude oil rallied 80 percent,” Maley said on CNBC’s “Trading Nation” on Thursday. “It got right exactly to that level on Christmas Eve and has bounced almost 10 percent since then.” –cnbc.com
Like a phoenix rising from the ashes
Last year was a tough one for oil investors, as the market went from euphoric buying to panic selling in a matter of weeks. That sell-off, however, could end up being a great buying opportunity in hindsight, because oil stocks that cratered in 2018 could be among this year’s biggest gainers if oil prices bounce back. That’s why investors might want to consider taking a contrarian approach and buying solid oil companies like Noble Energy, Devon, and Cimarex that are coming off a rough year, since they stand the best chance at bouncing back in 2019.-fool