Oil Services ETF Formed Descending Triangle
Igor Rakhmanov | Apr 04, 2013 02:56AM ET
On Mar 21 I posted diagrams showing a poor performance of the Energy sector over the past month and the Oil Equipment and Services industry in particular.
Since then the Market Vectors Oil Services ETF (OIH) plotted a very interesting pattern on the medium horizon P&F chart.
The March consolidation is unfolding as a Downside Triangle (green) with the lower border at 41.50. If the weakness in OIH continues then the ETF can fall to 41 reversing the medium-term uptrend and issuing a strong Quadruple Bottom sell signal with the next support area at 39-39.50 (green rectangle).
Measured move calculated from the height of a descending triangle on the candle chart gives 38 as a potential price target.
GLNG, which I have a position in, tested resistance at 37.2 and the upper boundary of a falling trendchannel (purple) and reversed back.
At the 37 resistance level I added puts to my position for the short-term trade on Mar 26. I sold this part of puts today in the morning when GLNG fell to the 35.4 level.
Sold to close GLNG May13 35 Put 10 contracts at $1.00
Disclaimer: I express only my personal opinion on the market and do not provide any trading or financial advice (see Disclaimer on my site).
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