Here’s What’s Developing In Oil Services

  • June 11, 2003
  • Derrick Hobbs


I’m sure the Oil Service stocks caught many eyes today.
I thought it might be healthy to take a peak at the Oil Service HOLDRs
(
OIH |
Quote |
Chart |
News |
PowerRating).
First a quick lesson on this trading vehicle:

  1. Not all stocks are evenly
    weighted in this HOLDR.

  2. Six stocks represent over 50%
    of the entire HOLDR.

  3. Baker Hughes
    (
    BHI |
    Quote |
    Chart |
    News |
    PowerRating)     is the
    largest at over 11% weighting.

Now, to the good stuff. Below
is a chart of (OIH). As you can see we are sitting in a critical price
resistance zone where two Bearish Patterns have completed.

 

To get a better feel for what
kind of action to expect from this ETF and if it will actually reverse in this
Fib resistance zone or push straight through it, let’s look at those  6 stocks
that make up over 50% of the mix. You can read on each chart what I see, but
here is my summary:

  1. We are facing immediate price
    resistance decisions. However, if we clear those price levels, each of these
    stocks have the ability to run 10-20%, as we hit major Air Pockets, to
    the upside to complete bigger weekly Bearish patterns.

  2. Below is a nice summary table
    of what I’ve been discussion as well as charts of each stock (
    (
    BHI |
    Quote |
    Chart |
    News |
    PowerRating)    ,
    (
    BJS |
    Quote |
    Chart |
    News |
    PowerRating)    ,

    (
    SLB |
    Quote |
    Chart |
    News |
    PowerRating)    ,
    (
    HAL |
    Quote |
    Chart |
    News |
    PowerRating)    ,
    (
    NBR |
    Quote |
    Chart |
    News |
    PowerRating)    ,
    (
    GS |
    Quote |
    Chart |
    News |
    PowerRating)    )

 

Here are the charts below.






Bottom line…there are lots of
bearish patterns, but most are completing at higher levels, allowing for another
10-20% run to the upside. There are immediate resistance zones on each stock
that, if violated, would create a momentum upside situation. So be watching
those zones.


Homebuilder update:

Here’s me….then me on
Homebuilders (Anybody got a puke bag…what a ride!)



Have a great night!

Derrik Hobbs

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