The oil group led this market in late November and very early December, with the Oil Service HOLDRs (ETF) (NYSE:OIH) the place to be. Now, it seems like the consolidation phase could be over and another move could be imminent.
Take a look at Halliburton Company (NYSE:HAL). The stock has a nice upper range. Halliburton seems like it’s holding the $39 area and wants to ignite into new highs. Buying a feeler around here and then adding above $40.50 could be a nice momentum trade. The stop would be at $38.50.
Schlumberger Limited. (NYSE:SLB) we also listed this a few times. This stock often leads the group and also looks ready to break out into new highs. Base-on-base patterns are always a bit risky, but this is a nice pattern here. A break above $84-84.50 and Schlumberger could get momentum here. The stop would be $83.
*DISCLOSURE: Long OIH, SLB
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