Market Vectors Oil Services ETF ( $OIH) Putting In A Bottom: $SLB, $HAL, $BHI, $CAM, $NOV, $TS, $FTI, $RIG

Market Vectors Oil Services ETF (OIH) — This non-diversified exchange-traded fund seeks to replicate the price and yield performance of the Market Vectors US Listed Oil Services 25 Index, before fees and expenses. (The fund’s expense ratio is 0.35%). The underlying Oil Services Index is comprised of the largest and most liquid U.S.-listed companies that derive at least half of their revenues from the oil services industry.

The top 10 holdings in OIH are Schlumberger Limited (SLB), Halliburton Company (HAL), Baker Hughes Incorporated (BHI), Cameron International Corporation (CAM), National-Oilwell Varco, Inc. (NOV), Helmerich & Payne, Inc. (HP), Tenaris SA (ADR) (TS), FMC Technologies, Inc. (FTI), Weatherford International PLC and Transocean LTD (RIG).

OIH has obviously struggled along with these companies, declining roughly 40% in the past year. But the oil and gas industry is not going out of business, and the U.S. rig count has fallen to a five-year low. This is likely to create more demand and higher prices for oil and could make OIH a bottom fisher’s dream.

On Friday, OIH experienced an “outside reversal” — a formation often seen at long-term bottoms. And it performed the reversal off of what appears to be a double-bottom on higher-than-average volume. MACD also flashed a new buy signal.

Buy OIH under $29 for a trade to $36 for a potential return of 24%. Investors may also want to consider it as a long-term position for what could be extraordinary capital gains in addition to the 3.1% yield the fund currently throws off.