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Cramer: Oil is not dead yet

Will the hideous decline in oil ever end?

In reality, only time will tell...and maybe a psychic with a crystal ball. Jim Cramer doesn't think investors need a crystal ball in this case, because he knows there is still some life left in oil.

"Just because the price of oil has cratered, that doesn't mean the oil companies can't rally—look at EOG which has been roaring ever since it reported a spectacular quarter last week," said the "Mad Money" host.

Tom Collins, a technician and founder of RetroWallStreet.com and colleague at RealMoney.com, gave his technical forecast for oil to Cramer on Tuesday.

To begin, Collins thinks it is important to examine the charts of the West Texas Intermediate Crude chart from all angles. In his up close and distant view, he does not see that oil will improve any time soon. It has been down five months in a row, and the last two months have been a killer.

The vortex indicator is a tool that helps technicians identify the start of a new trend. Unfortunately, Collins interprets the indicator as bearish for oil, meaning that if any bounce were to occur it will be sold.

"Until this monthly chart closes over $80, Collins thinks there is absolutely no reason to consider taking a long position in oil," added Cramer.

But do not worry; Cramer still has his fans covered. This doesn't mean the whole oil complex is in trouble. As he mentioned on Monday the big players like EOG can still be owned, because they are companies with strong management, and the day to day price of crude matters less to their bottom line than most would think.

Collins said the best way to play the oil patch is to go big and go boring, adding that Exxon Mobil takes the cake as the biggest yawn factory of them all.

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Looking at its chart, there isn't much of a correlation between Exxon and the price of oil. It's going to do what it wants to do, regardless of oil. Collins pointed out that it usually takes months and months for that correlation to return, which means Exxon is not in any danger of oil volatility for some time.

Cramer thinks it could make sense to buy into Exxon on an oil-inspired weakness because it still has a 2.9-percent yield.

So there is no need to visit your tarot card reader to figure out when the price of oil will come back up to make profits. Cramer recommends finding that window of opportunity for the big oil players and taking advantage.

Call Cramer: 1-800-743-CNBC

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