OIH TECHNICALS REVISITED

On thursday, I discussed the possibility of shorting or selling calls against the OIH because it had hit a potential resistance point at the 50 day SMA in the 142 area.

Sure enough, the OIH got as high as 143.5 and has gone straight down since and is now in the 136.6 area. If history is any guide the shares may trade to the 132 area and stabilize. Interesting how the 142 area has been resistance on the OIH since mid February.

I am short the OIH and my strategey will probably be to sell puts in the low 130 area (prior support).