Tuesday, January 31, 2017

Whoops! Oil Services (OIH) Breaks Support

I'm exhausted and the work keeps piling up but I feel this is important to write a quick article about. Oil Services ETF OIH broke a keep support level today after having been caught in a declining triangle pattern (bearish outcome, often). My long term MACD indicators are about to cross over bearishly and a medium term indicator put in a sell signal back on December 19th, so today was what I was waiting for. It's outside the Bollinger Bands so either we abort and move back up tomorrow or it slides hard. Without the EMA's crossing over it's still technically a bullish play, but things look dicey here and today's engulfing pattern has played a large part. I've drawn in some lower support levels at $32.25 and $30.25 which I think tells you where this is headed tomorrow.