Oil Stocks: Larry Berman, chief technical strategist, CIBC World Markets

Larry Berman, chief technical strategist, CIBC World Markets with outlook on oil and oil stocks:

On Oil:

right now we're still building base for oil..when we got toward $80, I got bearish..this base needs to hold..market needs to prove to me that it can hold psychological point..we'll get another leg up if it holds..long-term supply and demand points up..if oil down another $10, significant damage to oil stocks
since mid-August we've been off energy and gold story, only now we're starting to buy back, put out a recommendation to buy iShares Cdn Energy at $70

On Oil Stocks:

ENSIGN ENERGY SERIVCES (TSE:ESI): back towards 52-week lows..critical test..oil sector service..if it holds at these levels, good buy..

UTS ENERGY (TSE:UTS): company very highly leveraged to oil price..no current income, no profitability right now..higher beta..technically no strong lines of support, below previous low..at this point speculative play..see some support at $2.00..best buying opportunity maybe 1-2 away

ENCANA (NYSE:ECA TSE:ECA): any move below $50 relatively short-lived and is a buy..$48 ideal for risk-reward basis, look to go back up to $55-56

CANADIAN OIL SANDS (TSE:COS.UN): hold off..ideal time to buy some point next couple of months..need to test $56 oil first..risk-reward good today but stock probably not going to do much

PENN WEST (NYSE:PWE TSE:PWT.UN): kind of peaked out..marginal new highs..timing-wise not ideal, risk-reward pretty good..caveat is $56 oil