We Cannot Predict But We Can Prepare
Contributed Opinion

Source:

Jack Chan Technical analyst Jack Chan says the charts suggest that the major correction in the oil service sector since 2014 is now complete.

Our proprietary energy cycle is now at levels of previous tops, with a divergence in place.

A divergence occurs when the BP is at lower high while energy stocks are at a higher high.

OSX Oil Services Index

Our long-term model remains at a major sell signal since 2014, but can soon change if prices remain firm.

OSX Oil Services Index

From the Elliott wave perspective, there is a clear five wave up and waves in fives are impulsive, suggesting that the major correction since 2014 is now complete. A corrective pullback/consolidation should not break below top of wave1.

Summary
We cannot predict but we can prepare.
If prices remain above the top of wave1 at the next cycle bottom, investors can consider accumulating for the long term.

Jack Chan is the editor of Simply Profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

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Disclosure:
1) Statement and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. Jack Chan was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
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All charts courtesy of Jack Chan.

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