Entry signal given on oil service Performance Ranking and RSI divergence trade

The entry criteria defined on 13 May for the National Oilwell Varco (NOV) sector relative strength trade have been fulfilled.

On Friday 24 May, the ratio of NOV versus iShares Dow Jones US Oil Equipment Index (IEZ) broke above the entry level of 1.16691, closing at 1.18973. The pair is bought with a stop loss below the low of 16 May of 1.13413, which is 4.9% lower.

National Oilwell Varco (NOV) vs IEZ (weekly chart)

The move down to the 16 May low did not move the 14 day RSI back below 30, which fits with my RSI divergence entry criteria.

National Oilwell Varco (NOV) vs IEZ (daily chart)