Tuesday, November 28, 2006

Buy Stop @ 141.07 : OIH ETF is coiling as the Jan '07 Crude Oil contract anticipates higher prices

The OIH ETF (OIH, 140.68) is currently coiling narrowing its price range as evidenced by its falling ADX (16.56) for the last few months. Also, as I discussed in my previous post (Nov 27 '06), January '07 Crude Oil appears to be in a bottoming process with a bullish divergence to the upside. Coupled together, the OIH suggests a bullish bias from these levels. A Buy stop is recommended
@ 141.07 yesterday's high. Stop 140.32.