Oil Service HOLDRS (AMEX: OIH) Double Top? Asks Market Timer Frank Kollar
June 12, 2008 (FinancialWire) (By Frank Kollar)
Shares of Oil Service HOLDRS (AMEX: OIH) reached $220 on May 21 and pulled back. OIH tried again on June 6 but stopped at the same level and has been pulling back since.
Is this a double top that is forecasting a decline in OIH prices over coming weeks? If OIH closes below $200 a share that may very well be the case.
But the bullish case is also strong. If OIH can close above $220 a share, which is a strong Fib resistance level (fib 127.2%), the way will be clear for a run to the next resistance level at $239.91.
Watch for closes either above $220 or below $200 for clues to the direction of prices in OIH in coming weeks.
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.
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