Positive Energy in a Sea of Negativity

The oil services stocks, using the OIH ETF as a proxy, has been a glaring laggard during oil's recent resurgence. Titans like HAL NOV SLB, among others, have mostly sat out the rally and watched as large cap integrated plays like COP and exploration firms like COG surged. 

However, the longer the crude rally lasts the more likely it is that SLB can finally find its footing. Moreover, a small cap but industry veteran such as Newpark Resources has notably outperformed its larger cap services and equipment plays. 

On the NR daily chart, below, with earnings now out of the way note how the Houston area-based Newpark valiantly held $8.65 on a recent backtest of that breakout level. 

As long as that continues to be the case, NR merits attention on the long side as the oil rally now seems to be met with a fair deal of skepticism, whereas previous rally attempts in the last few years were often met with too much cheerleading for my taste to represent a true bottom.