An Opportunity In Oil Services

There is high correlation between oil prices and oil service companies as shown in the chart below. So I would expect an increase in oil prices will push Oil Services ETF (OIH) upwards.

oil, oil prices, oil services

OIH Vs. OIL

Below OIH has formed a 4 year almost symmetrical Head & Shoulders, but what is interesting is that the pattern failed as of last week by closing above the right shoulder major resistance level of 45.80. This resistance zone is significant because it has kept prices down for over 20 months. I am projecting a possible target of 55.

OIH, Oil, Oil Services, HAL, SLB, NOV

OIH Weekly

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