Oil Services Stocks Are Looking Overbought: OIH, HAL, SLB, BHI

The oil services stocks have simply been on fire as of late. The popular and highly traded Oil Services Holders Trust (NYSE:OIH) has rallied higher by $20.00 since June 27, 2011. That is a 15.0 percent increase in less than one month. Many of the leading oil services stocks have had even better moves. The sector still looks very strong on the charts trading above all of the major moving averages. The only problem that a technical chart trader can see is that the sector is overbought and extended at this time. Normally, when a stock, or sector gets this extended it will need to pullback and consolidate before moving higher. Institutional traders will usually let the stock pullback or form a base before buying more shares.

Some of the leading oil services stocks that are short term extended at this time are Halliburton Co. (NYSE:HAL), Schlumberger LTD. (NYSE:SLB), and Baker Hughes Inc. (NYSE:BHI). These stocks are still leading stocks that remain strong on the charts, however, at these levels a pullback or consolidation is in order.

About Nicholas Santiago 575 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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