Right now the OIH is sittin with its head against the 50 day MA. With these service companies due to report, AND what little effect OPEC sentiment will have, it may give the OIH enough power to get up above the 50 - from there theres some chart resistance to 132. If the OIH can break above 132 then 140 is a very real possibility.
I also agree that the OIH has moved in 4-6 point increments on its swings -- although that movement has been narrowing to the point where its swings happen intraday. I commented a number of days ago that if it keeps up its decreasing amplitude swings itd end up flatlining. Right now the median point of that flatline appears that it would be @ 126, and right now we are at the top of the swing range.
If we break above 130 and 132 then theres hope for 140.
Youd think the earnings would be the determining factor and that 140 would be a lock - right now im too chicken to bet any money on hitting 140 on the OIH.
slb reporting tomorrow. its weighting in oih should push oih higher. surprisingly, people are releasing that Nat gas is oversold and it is going higher. oih and nbr both bounced of their 10 day MA yesterday and nbr repeated that this AM. I think strongly that the correction is over and we should go up from here.
by the way this morning on bloomberg there was a piece that as how Goldman saks started sell off in the energy 2 months ago by changing the energy weighing in its holdings.