Oil Services Stocks: Hold 'Em or Fold 'Em?

Tickers in this article: BHI CLB DO HAL MDR NBR NE NOV OIH OIS PTEN RIG SLB TDW TS WFT
NEW YORK ( TheStreet) -- As Kenny Rogers sings in "The Gambler," "You got to know when to hold 'em, know when to fold 'em / Know when to walk away, know when to run." This is not only great advice for wildcatters but should also be heeded by traders and investors of oil services stocks.

Today's table shows the 25 stocks that are the components of the Market Vectors Oil Services ETF ($41.35). The daily chart shows a wide trading range between the June 26, 2012 low at $32.54 and the highs set on Feb. 24, 2012 at $45.14 and Feb. 14, 2013 at $45.12. I show weekly and monthly pivots at $42.18 and $42.85, which failed to hold this week.



Chart Courtesy of Thomson / Reuters

The oil services stocks slipped on Wednesday after the Energy Information Administration (EIA) reported that crude oil inventories rose to the highest level since 1990. Crude inventories rose 2.71 million barrels in the week ending March 29 to more that 388 million barrels.

The price of a barrel of Nymex Crude Oil fell by $2.40 to $94.46 closing just below the 50-day SMA at $94.64. My weekly value level is $31.20 with monthly and annual risky levels at $98.93 and $115.23.



Today the oils-energy sector is 5.4% overvalued according to www.ValuEngine.com with the oil & gas field services industry 3.6% overvalued, the oil & gas drilling industry 1.7% overvalued and the oil field machine & equipment industry 3.9% overvalued.