Sector Watch - Oil Services
Oil Services Sector (OSX)
Bearish
Sector trading above its…
20-day Moving Average: NO
50-day Moving Average: YES
100-day Moving Average: YES
Sentiment:Analyst rankings on the sector indicate that roughly 75 percent are “buys” or higher. Furthermore, the composite Schaeffer’s put/call open interest ratio for the sector stands in the middle of its annual range at 0.71, indicating complacency among options traders.
Outlook:The PHLX Oil Services Sector (OSX – 201.92) dropped below the support of its ascending 20-day moving average last week. In fact, the recent weakness in the index has left its 10-day and 20-day trendlines poised to form a bearish cross. What’s more, the index is testing the support of its ascending 10-week trendline. A breach of this intermediate-term support level could spell trouble for the sector.
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