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Oil prices edged higher on Wednesday, up 39 cents to $49.56, after a report showed inventories fell by 6.5 million barrels last week, government data showed, steeper than the expected decrease of 2.7 million barrels. The drop in inventories raised hopes that OPEC-led output cuts were helping wipe out a three-year global supply glut. Despite the overall optimism, the VanEck Vectors Oil Services ETF (OIH) fell to the lowest level since late February 2016, down 0.68% to 23.30. And according to our “U.S. Market Trading Map”, there could be more pains ahead for the ETF. Below is an update look at a trade in OIH.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.

Chart 1.2 – VanEck Vectors Oil Services ETF (weekly)

Our “U.S. Market Trading Map” painted OIH bars in red (strong sell). OIH has been trending steadily lower after the early 2016 recovery rally ran out of steam near the 38.2% Fibonacci retreatment of the 2014 down-leg. This week bearish break…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.

 

This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

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