The leading oil services stocks have been one of the big winning industry groups in 2021. The Vaneck Vectors Oil Services ETF (OIH) has been pulling back over the past 8 trading sessions. The popular ETF topped out on March 11th, 2021 at $230.01 a share. Since that pivot high, the shares have declined to around the $195.00 level. Traders should note that the stock is still trading above its 50-day moving average. This tells us that the overall trend is still pretty strong and this could just be a temporary pullback from a very overbought condition.
Traders should now watch the $180.00 area for daily chart support. This is where the ETF actually broke out in mid-February. Often, prior breakout levels will serve as short term support when tested. This is likely the case when the Vaneck Vectors Oil Services ETF (OIH) trades at this key daily chart support level.
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