yea it might be falling hard however it will soon be a buying oppportunity. I dont trade OIH, instead I trade PXJ and PXE. Both ETFS. These 2 ETFS are usually OVERSOLD when PXE is trading under 16.40 and PXJ under 17.00. Would look this time to add a postion in PXE at 15.50-16 area and PXJ around 16.00-16.50 area. Who knows where OIL is headed, maybe it breaks 50...If it does I will find it truly amazing. remember the hype behind 100 oil just 6 months ago when it was trading above 70 and everyone thought it was going to go 100+ and 4-5 at the pump.
Can I ask why you trade PXE and PXJ over OIH? PXE and PXJ are fairly thin stocks, OIH has much more average daily volume. And OIH seems to make huge moves almost every day, 6 points yesterday & 3 points today. Trading the puts in OIH the past two days could have made some nice profits. Not debating, just wondering why you wouldn't trade the more liquid ETF.
$130.00 is the current support level, then $125.00 and $120.00. This thing trades at $5.00 intervals, so you have to look at it that way. Oil looks like it will move down to $52.00. Where does that relate to OIH? Most likely $120.00. Doesn't seem like a good time to try to bottom pick though. All charts look very bearish.