Let’s start with the Oil Service sector chart: $OIH, shall we?
The above is a weekly chart. One quick look and you know it is on a strong uptrend.
Fundamentally speaking, there are strong demand for oil service in the coming future. Do you know why?
The Permian Basin region
Believe it or not, the ongoing speculation is that the Permian Basin has the potential to be the world second largest oil field behind Saudi Arabia. This speculation is also my reason in owning $PXD.
With that kind of oil reserve underneath, oil service industry is going to be quite busy, don’t you think?
Personally, I like to trade $WG.
Take a look at the weekly chart below:
While there are zig-zag on the price movement, the general direction is still up. Recent correction from earnings report provided the “zag”/correction for me to buy in for the ride.
Today, $WG bounces off the daily 5 MA and takes out the high of the last five days; this is good enough for me to start a position.
If price can close above the 79 & 89 MA lines today, it will be further confirmation that $WG can rebounce from here and move on higher through out 2014.
My 2 cents.