Big Gains Coming From A Low Priced Sector?

Posted By: investor

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.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily

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