Market Vectors Oil Service ETF (NYSE: OIH) Tests Long Term Up Trend
Shares of the Market Vectors Oil Service ETF (NYSE: OIH) are up against a key long term resistance point on the charts.
Chart Courtesy of StockCharts.com
Oil traders have been buying oil service stocks of late. There is a steady intermediate up trend that has unfolded. And OIH is up against its 200-day moving average.
Usually, this kind of move precedes a rise in the price of oil, which has been softening of late. That creates a divergence of prices, which at some point will converge, either to the up or the down side.
That's why, the way OIH breaks, up or down, is important. If it cracks above the 200-day moving average, we would expect oil prices to follow along with gasoline. A failure for OIH, could lead to lower oil prices.
The repecussions for the global economy and the geopolitical landscape of a big move in the price of oil, or up down, will be significant in the current world.
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