The selling looks overdone to me. I think a bounce is not too far off from here at 130. Any thouhgts?
agreed short term...i sold my puts... and see the same resistence and oversold ondicators at the 130 level. I am going to buy some August 130 calls if there is a small bounce Monday. I dont see any more than about 10 points max in the trade though.
I hope you are right. I just did an option calendar at 140. Good for the short shorts, not so good for the long longs.
OIH is now flat for the year and about 15 points off the November lows -- where crude was @ $55/barrel. It certainly looks short term oversold. A break of the technical support at 130ish has got to look attractive to shorts. Just have to wait and see what the weekend and Monday brings.
GL with this trade. I sold some 120 line auggie puts as I expect to collect some free premium , uh, or more importantly I wouldn't mind being long OIH at that level.
I see a head and shoulders. (Top reversal pattern) Could be starting new trend (down) but might bounce momentairly sometime next week. Day trade looks enticing but I wouldnt hold this on the long side. Remember, oil is know to run during these months. We could start seeing prices settle down in the fall, IMO http://stockcharts.com/h-sc/ui?s=oih&p=D&yr=0&mn=6&dy=0&id=p41019752270
Thanks for the chart. Not only is it showing dandruff(head & shoulders), but the RSI hasn't hit official oversold 30 level and MACD histogram is also not confirming positive divergence from the two most recent lower lows. All of which does not bode well for put sellers.
why is everybody bullish on this down here? Looks to me like some awfully big players are bailing out of these stocks, which always leads me to believe they know something I don't.