Buy the Bounce in Oil Services (OIH)

Last Friday, stocks staged a powerful comeback after an initial weak reaction to the September jobs report, which came in below expectations. While the entire market rose on Friday, some of the most notable rallies occurred in parts of the market that saw the most pain over the past three to 15 months.

To wit, energy-related stocks such as oil services stocks — as represented by the Market Vectors Oil Services ETF (OIH) — surged 5.5%, which through the lens of technical analysis not only increases the odds of seeing some further strength in coming days/weeks, but also gives active investors a well-defined area of support below to lean against.

Click on the chart below to read my full analysis:


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