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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: TREND1 who wrote (8767)	1/19/1998 6:43:00 PM
From: Ms. X	Respond to of 95453

Hi Larry, See, the oil service sector reversed from the 80% overbought area in October. Once a sector reverses all of the stocks in that sector immediately loose their base support. Kind of like the floor falling. If you look at the stocks individually, you will see they followed the sector downward. Once the sector reverses up, the stocks will follow again. The key though, is to find the stocks that held up the best during a turnaround. Check the relative strength, if it collapses it may not participate in the rebound. The good news is Oil Service is below 30% which gives it a wonderful opportunity to surge to the 70-80% level again. On an individual basis. I've discussed SLB but you asked about GLM and RDC as well. GLM held up extremely well during the decline. Only recently did it violate its long term support but it has rebounded up above that line again. It has formed a bearish signal reversal (which is statistically the best formation to have, something like 87% success rate to the upside) with the pattern being completed if the stock moves to 26. Daily momentum is positive with weekly turning positive at 23. I expect GLM to do quite well once the sector reverses up. RDC also held up well until it violated its support line at 26. It is trying to make a comeback. Would like to see it move to 32, passing recent resistance, before thinking of any new positions. Daily momentum positive and weekly turns positive at 29+.All three stocks lowered their relative strength, however none gave significant negative signals in doing so. Another nice looking stock in this arena is CDG. Unlike SLB, GLM, or RDC it never even came close to violating its support line....Wow. Any new highs? Wait for sector reversal and then these babies should move. I see nothing in these three stocks that make me nervous. I will post if anything scares me. Best of luck.