The Oil Service Index (OSX) remains one of the stronger groups. Its chart suggests that the index is bumping up against resistance at the 112 level (Red line) from May 2002. It may need to consolidate in order to pierce that line, and then penetrate above the January 2001 congestion (green line).
Oil Service Sector Index (OSX) 3 year chart
With technical support (blue line) nearby, the index could work out the May 2002 peak and then rally towards its older highs the rest of the year. Technicals and Money Flow are strong. While the Outlook is bullish, a better buy would be on a pullback.
Quote of the Day:
“Of a stock’s move:
– 31% can be attributed to the general stock market,
– 12% to the industry influence,
– 36% to the influence of other groupings, and the remaining
– 20% is peculiar to the one stock.”
–Benjamin F. King, Market and Industry Factors, Journal of Business, January 1966