Oil ETF, $OIH with a "head & shoulders" patternA lot of analyst have been publishing bullish outlooks for AMEX:XLE . But we have AMEX:OIH in our portfolio for long term position and now is also making several bullish signs. Bullish divergence with the MACD, above average buying volume and price action making a head & shoulders pattern (reversal pattern).
This trade would be a short term trade. The buy point is on the breakout above $197 and the target for profit taking is at $230 for a 16% profit. The projection for price target comes from the rules of the "h&s" pattern. According to the Bulkowski Chart Pattern Ranking (thepatternsite.com), this pattern is Rank #1 with a 50% chances of a throwback after the breakout, so be aware.
