This sleeping sector is ready to wake up, and it has the potential for triple-digit gains.
While the market has chased tech stocks higher, this sector has been patiently setting up for its own move higher.
Keep reading for a way to profit from a low-priced sector about to break out of a tight 3-month consolidation pattern.
Energy is a sector that has a tendency to trend.
So if the Oil Service Sector ETF (OIH) starts to trend after 3 months of consolidation you should take notice.
As you can see from the chart below, OIH is sitting on its 50-day moving average and about to breakout over 18.00.
If it trades over $18.20, the breakout should be underway.
Once the breakout has started, a good tight stop would be under $17.50.
OIH can be a very technical trading ETF, so it’s likely that an up move will pause at the 200-day moving average. That’s currently around $20.70
A $2 move in the ETF may not sound very exciting, but it has very liquid options, so this is where you can reap some big gains.
If OIH jumps to the $20-$21 level over the next 30 to 60 days, the July 20 calls will likely yield a 150%-300% gains.
Rick Nartarian, Chief Investment Officer
The American Investor Daily