Oil services stocks bust a move
Wednesday's big rally in the price of oil on the back of an Opec agreement to cut oil production had wide ranging consequences and among a broader risk-on rally also saw oil services stocks such as Schlumberger, Halliburton Company and Baker Hughes rally. The Oil Services stocks etf (OIH) looks poised for a rally continuation on the back of this.
On the multi-year weekly chart we see that the OIH etf after the initial rally off the January/February lows began to stall out in April and May and has thus been in consolidation mode ever since. This has allowed its yellow 50-week simple moving average to catch up with the price and at the margin hold as a support reference area. While Wednesday's rally in oil services stocks has not yet broken the OIH out of this consolidation phase to the upside, it is now nonetheless time to sit up and take notice.
Management and risk description
Entry: Buy the OIH etf or CFD thereof at $27.50 or higher
Time horizon: 1–3 weeks
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more