Stay Short in Oil Services
The oil-services sector is still on the defensive, and we fail to see any sort of bullish price resiliency developing from the current oversold conditions within the broader energy sector. The bears are keeping up the pressure in the oil-service names, and the bearish technical call we made on the group in May is still holding. Fundamental analysts are starting to look at the group and see a compelling valuation story develop.
We can't argue with the long-term fundamental story, and we have little doubt that the group will eventually find some traction and form a bullish reversal and recover. We simply fail to see any signs of bullish traction at this time, and the group remains in a technically weak position that supports the idea of even lower prices. Oil-service stocks are tending lower, and the trends remains intact....373 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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