Nick Santiago / inthemoneystocks.com
Chart of the Day:
Stock: OIH Futures: $CL
$40.00 level resistance
Oil Service Stocks Have Limited Upside
This morning, most of the leading oil service stocks are trading slightly higher on the session. Traders can follow this industry group by tracking the Market Vectors Oil Services ETF. Recently, the OIH has been rallying higher from its low made on November 16, 2012 when the OIH traded at $36.24 a share.
Today, the OIH is trading higher by 0.16 cents to $38.88 a share. Traders should watch the $40.00 level as major daily chart resistance for the OIH. The $40.00 area is also a gap window on the daily chart from October 23, 2012. Gap windows such as this will often serve as important resistance levels when they have not been filled. Currently, the OIH is trading into the daily 50, and 200-day moving averages, which is near term chart resistance. Short term traders should watch for intra-day chart resistance around the $39.20, and $39.50 levels.
Some leading oil service stocks that are part of the OIH include Schlumberger Limited SLB, Halliburton Company, HAL, National-Oilwell Varco Inc., NOV, and Baker Hughes Incorporated, BHI. All of these stocks will affect the movement in the OIH from day to day, therefore, these stocks should be watched closely when trading the oil services ETF.