BUZZ- Charts pointing to brighter path ahead for Oil Services ETF

Mon Apr 25, 2016 9:34am EDT
 
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** Market Vectors Oil Services ETF chart action pointing to further gains ahead

** Oil & gas ETFs including OIH and Energy Select Sector SPDR Fund handily outperforming S&P 500 YTD with 11-pct gains vs 2.3 pct for the broad market index

** Underlying commodities especially volatile and mixed with NYMEX crude futures up nearly 20 pct YTD vs 10 pct decline for NYMEX nat gas

** Meanwhile, sectors buffeted by news US energy firms cut oil rigs to lowest since Nov 2009, while ETF members Halliburton and Baker Hughes merger deal may fall through

** Nevertheless, OIH showing constructive price action, and like XLE, looks poised for further gains. Chart: tmsnrt.rs/1SI6TUT

** OIH just closed above 40-WMA for first time since bearish break in Sept 2014; 3 prior rallies proved counter-trend and ETF failed to reclaim key long-term MA

** Additionally, weekly MACD bullish and pressing highest levels since late 2014; study nearing zero-line inflection

** Thus, OIH appears focused on resistance in $32.78/$34.80 area, and eventually 50 pct Fibo retracement of 2014/2016 bear can call for return to $39.23/$39.79

** Reversal below 40-WMA can stall, and under $25.13 can threaten sub-$20.46 levels again

** Top OIH holdings by pct TNA end-of-Mar include Schlumberger, Halliburton and Cameron Intl

(Messaging: terence.gabriel.tr.com@reuters.net)