Friday, April 06, 2007
On the OIH, weekly momentum is overbought and rolling over. There's major horizontal trendline resistance and also resistance from the broken trendline. In the second charts the daily momentum is showing severe divergence and the daily Stoch is overbought and trying to rollover. On the 120-min, again, it's overbought and trying to rollover. One can only conclude that we are at a IT turning point on the OIH. I am expecting OIH to severly selloff starting Monday, which should be a good indication that the trend has turned down. Otherwise we might fool around the resistance area for some more time. Either way, a major correction is not that far away.