The last time we wrote about this relatively unknown oil services provider was over two years ago, in August 2017. Oil States stock was trading near $21.50 a share following a decline from almost $42. Yet, with the help of the Elliott Wave principle, we concluded the price can get cut in half again “to the area near $10 a share.“
Two years later now, Oil States still hasn’t fallen to $10, but it did fall to $11.73 in July 2019. Currently still below $15, it is a good time to take a look at the stock once again. Down 77.5% since June 2014, is now the moment for OIS to finally rebound?
The chart above puts the past five years into Elliott Wave perspective. The decline from $65.77 can be seen as a simple A-B-C zigzag correction. Wave A is a five-wave impulse. Wave B is a double zigzag, labeled (w)-(x)-(y), and wave C appears to be an ending diagonal.
The entire sequence seems complete and according to the theory, a bullish reversal can soon be expected. The MACD supports the positive idea with a bullish divergence between waves (3) and (5) of C. If this analysis is correct, the sentiment surrounding OIS can soon take a turn for the better.
However, price patterns are not everything when it comes to stock investing. Make sure you understand Oil States’ financial condition before joining the bull camp.
Did you like this analysis? Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!