The last time we wrote about this relatively unknown oil services provider was over two years ago, in August 2017. Oil States (NYSE:OIS) 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.