Strictly: Drilling and oil-field services Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: shust who wrote (44364)	5/9/1999 3:32:00 PM
From: BigBull	Read Replies (2) of 95453

Shust and PashaBear - SLB, SII, HAL, BHI - I do not own any of these stocks, nor have I purchased them for my own account during their current bull phase. I started posting their charts on this board as a leading indicators for price movement in the rest of the sector. Early on I posted their charts when they broke over their 200 day ma's. I further suggested that any dip into 200 dma and 50 dma would be an excellent time to purchase them. That simple indicator has proven to extraordinarily prescient. Recently, there has been some discussion on the thread about divergences appearing on these leading stocks. Further, it has been suggested that these stocks will pull the whole sector down wholesale. It is to that subject I now turn. Any technician worth his salt can now see these stocks are up against resistance, and are showing divergences in the major technical indicators (especially MACD)on the DAILY charts. Does this concern me. Yes, but not overly. The reasons why: 1. All still trade above their 50 dma. 2. Their uptends have not been broken. 3. Their are no divergences in the weekly charts, not even MACD sells. 4. The MACD monthly charts are only now issuing BUY signals. I am including these MSN DAILY charts to demonstrate my point because it is easy to quickly obtain the weekly and monthly charts by zooming out in turn. The zoom out button is in the lower left hand corner of the chart. One zoom will give the weekly, two zooms give the monthly. investor.msn.com investor.msn.com investor.msn.com investor.msn.com My call: HAL and SII will be "consolidating their gains". Upside is extremely limited in these two. Back and fill is the order of the day. I am looking for sideways action with a down side bias. Not a major rout. This is frequently the way overbought conditions with divergences are worked off in bull markets. The key will be the interaction between 200 and 50 dma's. SLB and BHI will continue up to 70 and 35 respectively where upon they will begin to act as HAL and SII. Cramers comments clearly indicate that the "middle tier" of analysts and commentators are now "believers". They will buy the dips. Going forward the most money will be made in the smaller less well known names. The percentage gain potential here is still QUITE large in my view. My picks among that group will be the subject of my next post. Whew, this way to much like work, I should have stayed retired. <g>

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next