May 18, 2011
Shares of Oil Service HOLDRS Trust (NYSE: OIH) continued their decline on Tuesday, May 17.
OIH has now lost some 12.4% from its rally closing highs of $166.00 reached on March 29.
With the trend decidedly to the downside, the question becomes how far will share prices fall before bottoming?
We have a target for this decline at the 50% retracement level, at $131.65. This is 9.6% below Tuesday’s close at $145.46 and 20.7% from its march high.
This is where traders should be looking for a reversal pattern and potential bottom. If this level is broken to the downside, the next support level is at $123.26.
http://www.fibtimer.com ETF Timing Strategy currently has a position in Oil Service HOLDRS Trust.