The OIH is all the craze these days, seemingly the next “can’t miss” trade. If you believe that price has memory, though, then the monthly chart of the oil services ETF should give pause to the idea of putting on fresh longs here. Note the significance of the $155-$160 level over the past few years, acting as both tough resistance in 2006, followed but sturdy support in 2007-2008. Also note how much more selling happened in late 2008 after this key area gave way during the crash.
After printing five consecutive green monthly candles, the risk/reward to adding longs here–despite whatever geopolitical reasons there may be–is not favorable in the short-term. The most probable scenario over the coming weeks would be a period of digestion or correction upon the first touch of this key area in several years.
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10 days ago I said I wanted to load up on names in this industry on any kind of dip. Even on Friday this group didn’t dip. I’m hoping this resistance will start at least some selling.
it’s looking more and more like ’08 all over again. surging commodities, dollar collapse.. will this time be different? i say no.
oh, did anything else happen in equities in ’08?
Stai zitto, paesano. Non si importa. Invece, si va a Las Vegas con me di giocare le carte.
Non ho mai visto la borsa cosi bella!
Spaventoso!