Service Interruption: 

The energy equipment plays have lagged their production peers, but are they about to enter into the strong sectors 2025 fray? The daily chart of the OIH below shows a lukewarm positive session Thursday as a taut candle was recorded and bears were unable to press the pedal lower after Wednesday’s drop of 3%. Round number theory has been a thorn in the ETF’s side at 300 but it is not losing too much altitude from the level. Its first objective would be to reclaim the 50-day SMA and then if it can catapult 300 look for a beach ball held underwater type breakout. Large holdings within will have to do some of the heavy lifting, pun intended, if this is to occur. SLB completed a bearish evening star pattern Wednesday with a pushback at its downward-sloping 200-day SMA, and bulls do not want to see this give up the 1/16 gap. HAL has shown 3 straight days of CLOSING upon the lows. On the other hand, former leaders turned into laggards like TDW and VAL, look like they are offering good risk/reward here. We looked at the former in our 12/30 Energy Note here. Not much is expected from this space and that is precisely the reason it may surprise. Wait for a move above 295 then add to through 300. Let it prove it to you. 

This article requires a Chartsmarter membership. Please click here to join.