Oil Service HOLDRS (AMEX: OIH) Pulls Back Says Market Timer Frank Kollar

May 15, 2008 (FinancialWire) (By Frank Kollar)

Shares of Oil Service HOLDRS (AMEX: OIH) reached $210 in mid-April, but since then they have struggled.

After correcting to $192 a share in early May, Oil Service HOLDRS again rallied and reached just over $207 a share before pulling back on Wednesday, May 14. Profit taking is all part of the game and OIH is only some 4% below its rally highs. Is it time to worry?

Oil Service HOLDRS remains in an uptrend and that is the way it should be traded until it signals otherwise. There are two support levels; one is the 50% retracement of the March to May rally at $185.15. The other is the May 1 correction lows at about $187.

A close below $185.00 would kill the rally, at least for the short term. Until then, the trend remains up.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in Oil Service HOLDRS .

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.