OIH “remains below important horizontal support (from a longer-term perspective). The price action since the 2014 top, however, increasingly looks to have taken the shape of a falling wedge pattern that now is trying to resolve to the upside,” according to TradingFloor.com “On the daily chart we see that Tuesday’s 4.66% rally in OIH has pushed it above the downtrend line since May as well as above the yellow 50-day moving average.”
“The subdued pricing environment, with crude hovering near the low $40s, will force the exit of marginal producers and lead towards industry consolidation with bigger, well established companies buying the weaker ones, just as we’ve seen in every oil cycle over the last three decades. Schlumberger’s purchase should give confidence to other oil service companies who’ve been patently waiting for acquisition opportunities,” according to Half Bridge Business Review.
Market Vectors Oil Services ETF
