3 Fibonacci price relationships in the 109-107.2 area .618 extension red dot swing low 1.0 extension of blue dot swing low .618 retracement of move from March low VWAP from March low has acted as support throughout the move higher
This downward valuation of e&p oil stocks, vs actual oil, has reached stupendous levels. Something has got to give. What and when will a catalyst appear to correct this?
Modest double bottom with upside divergence on OIH bought some 11.5 puts that expire oct 11 for 11c.
Support must hold at its significant level at 13. Breakout point level at 15.
Instead of selling a short strangle, it's better to buy some OTM contracts at next to nothing to make the trade efficient in terms of buying power. The breakeven points on the trade aren't GREAT, but, the trade is pretty low risk. If it works, great and if not, hey, we'll get 'em next time.
I find it hard to buy fundamentally, but technically it is giving a buy signal on an bullish rsi divergence basis.
Above the blue shaded region want to be long for a short timeframe move. RR is there. However, risk adjusted returns may be better in sectors with better relative strength. Trade may not be suitable for all risk profiles
AMEX:OIH tried to breakout of its range but could not do it. As the adage says, "There is nothing more bearish than a failed breakout." And, though the concept of a failed breakout can be debated, this tried to move upward but could not and has two strong bearish days behind it pushing it below previous support. This is looking like a very clear downward move.
After suffering a long draw down, spot oil has recovered well but this services ETF is lagging. Going back to the beginning of the year, OIH has been in a range between $16 and $18. Fueled by spot oil pushing $60 along with a positive sentiment in the overall markets (S&P 500 broke out yesterday over 2815) there's no reason this shouldn't run to $20 soon. We...
There does appear to be some light meaning the markets may not be ripe for the correction we all expect.