Oil Tankers Trading Strategy

The oil tanker sector is in a bull market. For research that helps explain why see The Oil Tanker Sector is on Fire. Below is my trading Strategy for the current oil tanker sector bull market:

• Buy when the daily RSI drops to 40 and/or a decline to near lateral support or the 50-day MA has occured. The following potential confirming buy signals are not required in a bull market as they may not occur for many or most bull market pullbacks. However, if these signals do occur some analysis should be performed to determine if either this is an excellent buying opportunity or if a trend reversal could be forming:

  • Low end of risk range
  • Symmetry
  • Sequential 9 or 13 buy
  • Downside exhaustion
  • IVOL Premium (buy/green).

• Sell a portion (but maintain a core as surprises are likely to the upside in bull markets) when the daily RSI is at least 70 and/or a sharp rise near any lateral resistance occurs. Potential confirming sell signals include:

  • High end of risk range
  • Symmetry
  • Sequential 9 or 13 sell
  • Upside exhaustion
  • IVOL Discount (sell/red).

See the Oil Tanker Companies table with links to relevant charts in stockcharts.com. These charts include the basic RSI and MA strategy. The additional strategies require Symbolik.com and ThinkOrSwim. I will detail these in the future.