Oil Market update – $80 here we come…

We now have the confirmation that we were expecting that a new intermediate uptrend is beginning in oil and oil stocks, with oil closing above $64 in the past couple of days, and the OIX oil stocks index breaking above 550 just over a week ago, signalling completion of an intermediate base in oil stocks. The outlook will remain positive even if both slip back below these respective levels in coming days or over the next week or two. A number of stocks in the oil and gas sector had big moves up late last week, notably Canwest Pete (CWPC), up 28% on Friday and Mexco Energy (MXC), up nearly 40% in the past couple of days, and there are several more lining up to make big moves, probably next week.