Oil Service HOLDRS (AMEX: OIH) Back At Its Lows Says Market Timer Frank Kollar.

June 21, 2006 (FinancialWire) (By Frank Kollar)

Exchange-traded fund Oil Service HOLDRS (AMEX: OIH) is again testing critical support. This could be the test that fails. The ETF is heavily weighted in Baker Hughes Incorporated (NYSE: BHI), Halliburton Company (NYSE: HAL) and Schlumberger Limited (NYSE: SLB) and provides investors with a diversified exposure to the oil service industry . Companies that provide drilling, well site management and related products and services for the oil service industry.

Oil Service HOLDRS has been in a corrective mode since May 10 th. On June 13, Oil Service HOLDRS hit 131.00, which is a critical Fib support level. It reversed and rallied almost 8% in the next few days. But now it is nearing this same level again. If Oil Service HOLDRS makes a decisive close below $131.00 we expect the decline to escalate on increasing volume. Prices could then drop to $121.00, the next support level, in the next week or two. Oil Service HOLDRS is also below a rising trend support line extending back to May 2005.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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