Parker Drilling Company, together with its subsidiaries, provides
contract drilling and drilling-related services in the United States,
Latin America, Africa, the Middle East, the Asia Pacific, and
Commonwealth of Independent States. It operates in six segments: Rental
Tools, U.S. Barge Drilling, U.S. Drilling, International Drilling,
Technical Services, and Construction Contract. The company operates
barge rigs for drilling natural gas, oil, and a combination of oil and
natural gas in the shallow waters in and along the inland waterways, as
well as drills geologically difficult wells and manages the logistical
and technological challenges of operating in remote, harsh, and
ecologically sensitive areas. As of February 28, 2013, its rig fleet
included 23 land rigs and 2 offshore barge rigs in international
locations; 12 barge rigs in the U.S. Gulf of Mexico; and 2 land rigs in
the U.S. The company also provides rental tools for land and offshore
oil and natural gas drilling and offers equipment used for drilling,
workover, and production applications, such as drill pipes, heavy-weight
drill pipes, tubing, high-torque connections, blow-out preventers,
drill collars, and others. In addition, the company also provides
technical services.
To review Parker’s stock, please take a look at the 1-year chart of PKD (Parker Drilling Company) below with my added notations:
PKD had been trading sideways for the last 3 months. Over that period
of time, the stock had formed a clear resistance level at $8.50 (red).
In addition, the stock also created a strong level of support at $7.50
(blue). The rectangle formation on PKD is very helpful in trading it
because at some point the stock would have to break one of the two
levels that the pattern had created. As you can see, earlier this week
the stock finally broke the $7.50 support and has already started moving
lower.
The Tale of the Tape: PKD recently broke down out of
its rectangle pattern. A rally up to $7.50 would provide an opportunity
to get short on the stock. However, a break back above $7.50 would
negate the forecast for a move lower.
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