How Far Can Oil Service HOLDRs Pull Back?
At last Oil Service HOLDRs (OIH) is
beginning to pull back. It has been rising eight consecutive weeks,
and has gained nearly 25%. I’m sure some traders are welcoming this decline.
09:17:29
(From TradingMarkets TradersWire)
Â
Setup Alert
Oil Service HOLDRs (OIH)
is approaching the 100% Fib projection level on its weekly chart. Needless to
say, the rising price of oil is pushing the stock higher. Watch out for a
violation of a trendline. OIH closed at 84.28 Friday.
Shortly before 10:00 AM, the stock broke down below a trend line, and it gave us
an opportunity to sell the stock short.
How far do you think SMH can pull back? One likely place is the 20-day MA
because it is coinciding with the 23.6% Fibonacci level. Let’s wait and see how
the stock behaves.
Have a nice afternoon session!
If you have questions, feel free to send them to me.
 Â