Oil Service Stocks Pause Despite Geopolitical Events
Almost everyone that trades energy or the oil service stocks is talking about the Iranian situation in the Middle East. The tensions in the region seem to be building on a daily basis. This event is certainly keeping a bid in the oil and energy markets. Normally, these geopolitical events will keep a bid under the oil service stocks, however, at some point that will change. That is why it is best to use charts and not rely on the news when trading.
The Market Vectors Oil Services ETF (NYSEARCA:OIH) has been inflating with the major stock indexes since December 19, 2011. This morning, the OIH is trading lower by 0.14 cents to $44.35 a share. The daily chart remains strong as the OIH is now trading above the important 200 moving average. The OIH now has an upside bias to the $46.50 area. Short term traders can watch for intra-day support around the $44.12, and $43.50 area. Some leading oil services stocks that are trading slightly lower today include Baker Hughes Inc (NYSE:BHI), Halliburton Co (NYSE:HAL), and Schlumberger Ltd (NYSE:SLB).