Wednesday, June 19, 2013

KBR, Inc. (NYSE: KBR)

KBR, Inc. operates as an engineering, construction, and services company worldwide. The company's Hydrocarbons segment designs and constructs liquefied natural gas and gas-to-liquids facilities; and delivers onshore and offshore oil and natural gas production facilities, including platforms, floating production and subsea facilities, and pipelines. Its Infrastructure, Government, and Power segment offers base operations, facilities management, border security, engineering, procurement, construction services, and logistics support to industrial commercial, defense, and governmental agencies; and project management, construction management, design, and support services for aviation, road, rail, maritime, water, waste water, building, and pipeline projects. The company's Services segment provides construction, construction management, fabrication, operations/maintenance, commissioning/startup, and turnaround services for the oil and gas, petrochemicals processing, mining, power, alternate energy, pulp and paper, industrial and manufacturing, and consumer product industries. Its Other segment includes the ventures business that invests in defense equipment and housing, toll roads, and petrochemicals projects.
To review KBR's stock, please take a look at the 1-year chart of KBR (KBR, Inc.) below with my added notations:
1-year chart of KBR (KBR, Inc.) KBR had been trading primarily sideways since September of last year. While doing so, the stock continually bumped up against $32 as resistance (blue), which was also a 52-week high resistance. After KBR finally pushed above that resistance back in the middle of May, the stock appears to be pulling back to the original breakout point of $32.
The Tale of the Tape: KBR broke out to a new 52-week high and is now pulling back. A long trade could be made at $32 with a stop placed below that level. A break below $32 would negate the forecast for a continued move higher.
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