Looks like a bottom in oil: Strategist

Has oil hit bottom? Saut says yes
Has oil hit bottom? Saut says yes   

After months of being on a downward slide, it looks like oil has hit a bottom, strategist Jeffrey Saut told CNBC on Monday.

He pointed to activity over the past week to bolster his call. First, there was the start of some M&A activity, he said. Then, on Thursday, the March crude futures oil contract made an "undercut low," which is a print below the previous reaction low. On Friday, the same contract traded higher by more than 8 percent.

"That is how bottoms are made," the managing director at Raymond James said in an interview with "Street Signs."

"I think you put a low in on crude oil prices, and we'll have to see if that holds in the coming days ahead."

Read More Oil could fall to as low as $30: OPEC delegates

U.S. crude settled up $1.33, at $49.57 on Monday, the highest in nearly a month. On Friday, it closed up 8 percent, its best day since June 2012, after data showed the number of rigs in operation in the U.S. falling by 94 for the week.

Benchmark Brent crude was last up $1.56 at $54.55 a barrel Monday, after swinging in a wide band of between $55.62 and $51.41.

That means the energy stocks, which have been "absolutely crushed," may also soon see a bounce, Saut said. He noted that some stocks were down to $2 from $40.

"If crude oil has bottomed, you're going to see some pretty dramatic moves on the upside on some of those compressed stocks," he said.

Read MoreWhy you should buy energy stocks now: Expert

He thinks individual investors would be best served to buy energycentric mutual funds or exchange-traded funds like the XLE.

Disclaimer

—CNBC's Jackie O'Sullivan and Reuters contributed to this report.