A Bet on Oil Rising (NOG)

by | Apr 16, 2024

Do world events matter to our stock picks?

Big events definitely do.

A few days ago, we saw a renewal of the Middle East conflict between Iran and Israel. We don’t know the ultimate severity of recent events or how long they’ll last.

But in the short term, a conflict in the Middle East puts oil squarely in the picture. If oil is endangered in any way, the price will rise.

And, probably not coincidentally, Northern Oil and Gas (NOG) has seen a lot of positive momentum lately.

Here’s the chart:

A break above $43.64 means the geopolitical events are more serious and oil could see a big run.

We’ll keep an eye on it.

Happy trading,

— Scott Welsh

P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

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