After a rally the last two weeks, the Oil Service HOLDRs (OIH) is bumping up against resistance from the October trendline and the late November highs. Also notice that this bounce retraced around 62% of the decline from mid November to early December. With the ETF starting to stall, traders should watch for a break below 117 to reverse the two week uptrend. The bottom indicator shows OIH with West Texas Intermediate ($WTIC). Notice how closely these two track. Continued strength in the Dollar could weigh on oil.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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